Craig Wear explains that Roth conversions at 70+ rarely pay off for your own taxes, since you won't live long enough to benefit. But they can help heirs avoid huge tax bills on inherited IRAs, shifting the tax savings to the next generation.
If you are well into your 70s, it's probably not a good idea to do conversions if your real objective is to save you and your spouse taxes during your lifetime. Once you get into your mid-70s, there just simply isn't, for most of us, there's just simply not enough mortality left to be able, for us to be able to justify that it was a good deal for you. However, if you're in your mid-70s or older and your real objective is, how do I make sure that I don't subject my heirs to having to dilute my IRA by paying a ton of taxes, then it can still be a good deal as long as you understand that the primary benefits are going to be going to your heirs and that you're not leaving them with a huge tax bill because they're having to pay the income taxes for receiving your IRAs that have not had any taxes paid on them.
Well, hey, you know, by now you've read the books, you've been to a webinar or 2, and you're still kind of of just kicking the tires, trying to figure out what you should do with your IRA conversions. If you're an IRA millionaire, schedule a call with one of our Rothologists. This is all we do. We don't sell financial products. We don't want to manage your money. We just do nothing but find the right strategies and help people day after day after day find the answer to the question, should I do conversions and at what pace? What's best for me long-term? So I hope you'll choose to join us. We've got lots of success stories. We'd love to be able to have you join the family, but more importantly, just schedule a call, talk to somebody, see what happens next.
