IRA Drone

7 May 2026 · 1 min

Watch on YouTube

0:38

In this brief video, Jerry Taylor uses a drone metaphor to explain the tax consequences of leaving a traditional IRA to a child versus performing a Roth conversion earlier. He illustrates a scenario where a $1 million IRA grows to $2 million, leading the heir to face a $700 k tax bill upon withdrawal. He contrasts this with a Roth conversion that would have incurred $500 k in tax earlier, leaving the heir $200 k ahead. Taylor concludes by promoting an upcoming workshop on May 21, directing viewers to the link in his bio for registration.

Chapters

So that IRA that you've been working on for 40 years, you know, the one you're planning on leaving your kid? Yeah, that IRA. It's sort of like a drone circling at 1,000 feet just looking for the right angle to shoot. So you leave your kid an IRA with $1 million in it. 10 years later, it's $2 million. Then Junior's got to take it all out. Your kid has to write that check for $700,000. If you'd done that Roth conversion back when I told you to, yeah, you would have paid $500,000 in tax then, but today, Junior would be coming out $200,000 ahead. Same money, totally different ending. I've got another workshop coming up on the 21st. Go up to the link in my bio and you can register.