What IRA balance range does the speaker cite as making someone a strong candidate for accelerated Roth conversions?

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

Maximize Your Retirement Savings with Roth Conversions

13 Aug 2024 · 1 min

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Craig Wear, CFP® explains Roth conversion strategy: many advisors recommend spreading conversions over long periods to avoid large tax hits, but accelerated Roth conversions can be advantageous for individuals with large IRA balances. He suggests that those with relatively low IRA balances and modest income needs may not benefit from conversions, whereas holders of larger IRAs (about $700,000–$800,000 and into the millions) are strong candidates for accelerated conversions.

Questions this video answers

Around $700,000–$800,000 and up into the millions.

Chapters

Well, a lot of people, a lot of advisors, and a lot of the tax people tell you to do is to spread those conversions out over a long period of time. So instead of just converting massive amounts over a short period of time, they want you to do it over a long, long period of time. And if you have a lower balance in your IRA and your resulting income needs are also part of that, then you probably don't need to worry about this. In fact, Roth conversions may not even be a benefit to you. But if you have a larger IRA balance, 7, $800,000 up into the millions, and whether your income is low or high, you're probably a great candidate to do accelerated Roth conversions.