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

The Biggest Roth Conversion Mistake

5 Nov 2024 · 0 min

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Craig Wear, CFP® argues that the common advice to stop Roth conversions at the top of your current tax bracket is usually wrong for IRA millionaires. Instead, he recommends accelerated conversions—even if that means paying into a higher tax bracket now—because gradual conversions (or leaving funds for RMDs) risk pushing you into higher brackets later.

Many people tell you you just stop converting at the top of your current tax bracket if you're an IRA millionaire. I've. I've never seen that to be the case. If you're a good candidate to do accelerated conversions, I've never seen that to be the right way. You are much better off to pay today a higher tax bracket to get it converted faster than to leave it alone and to just let RMDs just gradually get higher and higher and you'll creep up through the brackets.