Craig Wear, CFP® explains Roth conversion strategies: conversions are less urgent when IRA balances are smaller; for clients aged about 75–76 and older the owner gains less direct benefit while heirs may gain substantial advantage. He recommends very aggressive Roth conversions for IRA millionaires to maximize tax benefits.
But the less you have in an ira, the less urgent it is to do aggressive conversions. And the older you are, say, over 75, 76 or so, the less you will benefit directly from the conversions. Your heirs will probably gain tremendous benefit. So we have a lot of clients that come to us at 75 or older that we help them to develop a strategy, but they know on the front end that they're going to get some benefit, but their heirs are really going to be the big winner. So, look, if you're an IRA millionaire, a much more aggressive Roth conversion strategy is the only one that's going to truly maximize your tax advantages.
