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

Navigating Taxes for IRA Millionaires

9 Dec 2024 · 1 min

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The speaker (Craig Wear, CFP®) introduces the concept of "IRA millionaires": clients whose large IRA accounts create a future tax problem for their heirs. He emphasizes that deferring taxes in an IRA increases account balances and may force heirs to withdraw funds to pay taxes; therefore, identifying tax exposure early (before year-end) is important to choosing an appropriate strategy and preparing for possible future tax-law changes.

Chapters

You know, a lot of people that we work with, I mean, everybody we work with, are what I call IRA millionaires. The IRA is just there basically cause a tax problem. And so, by kicking the can down the road for taxes and leaving it to your heirs, there's going to be a higher balance. And you got to kind of think about what's that going to do for them? And is most of my future estate going to be by them having to take out money to pay the tax man? And then, obviously, the other reason that this is a big deal to get the answer to these on the front end very quickly before the the year, is to also figure out so you can figure out what your right game plan is going to be to also understand the exposure that you're going to have to future tax changes, whether they go up or down or sideways.