Good discussion and explanations Eric. My conversions are primarily driven with the next generation in mind. Figuring out the tax implications, as you point out, can be very trickey. My heirs will be my two adult children and two grandchildren who are also now in their 20's. As I'm not planning on checking out anytime soon😉, guessing where everyone will be with their earnings and taxes when I die is like herding cats🤪. Have a great weekend Eric. Larry, Central Valley, Ca
My wife and I are aggressively converting to Roth during our pre social security retirement window. We have 2 married daughters in likely a high tax bracket. Our conversion goal is to maximize their Roth inheritance while leaving enough traditional IRA balances for my wife and I to live comfortably. If there is a remaining IRA balance, so be it, if we don’t have enough, we will start spending to Roth balances. In addition, to effectively pass on wealth to our grandkids, we are funding their 529 accounts. This allows our daughters to either fund their retirement savings more while we are living or enjoy a more comfortable lifestyle while not having to worry about future college expenses.
Just completed my first large ROTH conversion. One more big one in 2025 in preparation for the possible reversion back to the pre 2017 tax brackets the year after. ROTH conversions for me are all about the widow tax and passing money on to my two children who will not only be high wage earners, but will be living in a time that taxes are almost certain to be higher with our government's spending habits. Great discussion!
Good video. I plan on trying to spend down my IRA and my heirs will get everything else tax free. If I die before planned they pay more tax but on a larger balance because I fell short drawing it down.
Wow. You explained this so well. You have a knack for showing the variables and offering possible solutions. Thanks for the weekly videos. I look forward to Friday evenings.
Nice video. Note that the single high paid doctor might want to take a long unpaid sabbatical from her stressful job, and could use a withdrawal from the inherited IRA in the year she had no or reduced income from employment.
@@rapfreak7797 Roth to high income earner, IRA to someone who likely will be in a lower tax bracket. A living trust is helpful in getting assets to my granddaughter since she’s in minor right now.
Good discussion and explanations Eric. My conversions are primarily driven with the next generation in mind. Figuring out the tax implications, as you point out, can be very trickey. My heirs will be my two adult children and two grandchildren who are also now in their 20's. As I'm not planning on checking out anytime soon😉, guessing where everyone will be with their earnings and taxes when I die is like herding cats🤪. Have a great weekend Eric. Larry, Central Valley, Ca
My wife and I are aggressively converting to Roth during our pre social security retirement window. We have 2 married daughters in likely a high tax bracket. Our conversion goal is to maximize their Roth inheritance while leaving enough traditional IRA balances for my wife and I to live comfortably. If there is a remaining IRA balance, so be it, if we don’t have enough, we will start spending to Roth balances. In addition, to effectively pass on wealth to our grandkids, we are funding their 529 accounts. This allows our daughters to either fund their retirement savings more while we are living or enjoy a more comfortable lifestyle while not having to worry about future college expenses.
Just completed my first large ROTH conversion. One more big one in 2025 in preparation for the possible reversion back to the pre 2017 tax brackets the year after. ROTH conversions for me are all about the widow tax and passing money on to my two children who will not only be high wage earners, but will be living in a time that taxes are almost certain to be higher with our government's spending habits. Great discussion!
Same for me, I’m 20 years out from retirement though.
Good video. I plan on trying to spend down my IRA and my heirs will get everything else tax free. If I die before planned they pay more tax but on a larger balance because I fell short drawing it down.
Eric, your videos are exceptional! Thanks as always for making this complex topic digestible for the rest of us.
Wow. You explained this so well. You have a knack for showing the variables and offering possible solutions. Thanks for the weekly videos. I look forward to Friday evenings.
Eric's graphs are miles ahead of his competition.
Pretty complicated in order to 'get it right' Eric ! Great info!!
Very good points about multiple heirs.
Nice video. Note that the single high paid doctor might want to take a long unpaid sabbatical from her stressful job, and could use a withdrawal from the inherited IRA in the year she had no or reduced income from employment.
For me, Roth to my daughter, then skip a generation with the traditional ira going to my only granddaughter.
What is your goal/ justification with this method?
@@rapfreak7797 Roth to high income earner, IRA to someone who likely will be in a lower tax bracket.
A living trust is helpful in getting assets to my granddaughter since she’s in minor right now.
Please do a video focusing on Roth conversion vs merely depositing an RMD into a taxable account.