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

The Shocking IRA Conversion Mistake You Must Avoid! 💰

28 Oct 2024 · 0 min

Watch on YouTube

0:28

YouTube video by Craig Wear, CFP® about common IRA conversion mistakes and their tax implications. In the first noted point the speaker warns that limiting Roth conversions to just below the top of the current tax bracket is a common mistake; he claims this approach can result in substantially higher lifetime taxes—citing as much as $1 million more tax in some cases.

Questions this video answers

Converting only enough to get to the top of the current tax bracket when doing Roth conversions.

Up to $1 million more tax (speaker's claim).

So mistake number one, a lot of people make the mistake of converting only enough to get to the top of their current tax bracket. Many people really limit their conversions to just below the top of that current tax bracket, believing that it's the most tax efficient strategy. Our research and our experience shows that you're going to pay a lot more tax, and I'm talking about $1 million more tax, not just a little bit of chump change.