4. Taxes at All-Time Lows Creating Opportune Time to Convert IRA Accounts
Tax Rates are near record lows and are expected to rise sharply in the coming years.
5 Never Worry About Heirs Cashing Out an IRA at Huge Tax Losses
90% of Heirs cash-out IRAs with hard-earned savings to pay off mortgages, credit cards debts, or purchasing luxury items creating heavy tax consequences.
6 Tax Free Accounts Transfer and Continue to Heirs
Tax Free accounts will transfer to heirs Tax Free so they too can continue to grow the remaining assets Tax Free and distribute them Tax Free. Upon the death of the heirs the account must be closed-out.
7. Lowering Conversion Over-Time
It is wise to convert a portion of the IRA annually to not cause a large jump in tax brackets. For instance, a $500,000 IRA conversion would pay $185,000 in taxes at a 37% tax rate.
This is obviously much better than the estimated $500,000 tax bill over time. However, if one converted, say, $100,000 annually over five years at an estimated 18% effective tax rate, the conversion tax liability is just $90,000.
The Retirement Planning Institute has developed a powerful financial team of Tax Attorneys, Investment Advisors, Insurance Professionals, and Pension Actuaries... Read More