Roth Conversion Opportunity

A 75-year-old with a large traditional IRA balance can still convert to Roth without missing the chance.

“I would not say that this person missed a Roth conversion opportunity”

RMDs and Tax Challenges

Large traditional IRAs create high taxes and IRMAAs that could raise Medicare premiums by hundreds of dollars per month.

Inheritance Tax Risks

Non-spouse heirs must empty IRA within 10 years, creating tax issues when inheriting large balances during peak earning years.

Partial Conversions

Al Kingan recommends measured partial conversions to avoid tax bracket spikes, especially if highest tax rate is 22% or 24%.

“The best answer may be measured, partial conversions rather than an all-or-nothing approach”

Taxable Account Strategy

Saving excess RMDs in taxable accounts provides step-up basis for heirs and avoids 10-year rules for IRA distributions.

Qualified Charitable Distributions

QCDs allow transferring IRA funds to charities to satisfy RMDs and lower adjusted gross income for tax purposes.

“The QCD limit in 2026 is $111,000”

Life Insurance Solution

Using RMDs to purchase life insurance provides tax-free death benefits for heirs to cover inheritance taxes.

“I have hundreds of clients who are able to enjoy their retirement and spend what they want to, knowing that upon death, a tax-free death benefit will go to beneficiaries”

Inheritance Split Strategy

Splitting Roth assets among children and traditional IRA assets among grandchildren reduces tax burdens for heirs.

Expert Warning

Starting Roth conversions earlier would provide more options for this reader's estate planning.

“Had our reader perhaps started Roth conversions years earlier, they'd have more options”