Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

How IRA Millionaires Avoid Millions in Taxes

29 Jul 2026 · 1 min

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In this segment, CFP® Craig Wear explains why the common practice of converting traditional IRA assets only up to the top of one’s current tax bracket is insufficient for high‑balance accounts. For individuals with $1 million or more in IRAs, such a conservative approach can lead to a massive “tax explosion” when required minimum distributions (RMDs) begin, because the unconverted balance continues to grow tax‑deferred and then is taxed all at once. Wear advocates a proactive strategy: identify a few strategic years to convert amounts that exceed the current tax bracket, thereby reducing the future taxable base. He emphasizes the importance of forward‑looking projections of the IRA balance at ages 73, 75, and 80, and then working backward to determine the size and timing of earlier conversions needed to keep future RMD‑driven taxes manageable. This forward‑backward planning is presented as a core component of every IRA plan for high‑net‑worth clients.

Chapters

Most people just convert to the top of their tax bracket and they move on. It feels comfortable and it feels safe. And that works for most people with less than $1 million in their IRAs, but it leads to a tax explosion for the people who worked hard to save $1 million or more, which is why most people we help avoid millions in taxes. They end up having a few strategic years where they're converting well above their current tax bracket. They avoid the situation where an unconverted IRA keeps growing and creates a tax explosion once the RMDs hit. That's why Every IRA plan has to begin with, where is this account headed if I continue the current pace? Once you see the projected IRA at 73 years old, 75, and 80, you can begin to work backward to determine what the earlier conversions really need to accomplish.