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

Maximizing Your Net Worth

6 Jun 2024 · 1 min

Watch on YouTube

0:30

Craig Wear, CFP® explains that high-income earners with large IRAs/401(k)s can use Roth conversions to improve net worth despite paying taxes at conversion; when done properly, annual account gains can offset the tax impact. Shorter time frames for conversions may place very high-income earners in a better position even at higher tax brackets.

Chapters

Now, if you're very high income earner and you have a very large IRA a lot of the time, a much shorter time frame actually puts you in a lot better position even at the higher tax bracket. But if you do Roth conversions properly, however that is the gains in your IRA and 401k accounts annually can offset the impact to your net worth on your taxes. But make no mistake, you do have to pay the tax when you do the conversion.