Roth Conversion Strategies

If you have over $1 million in retirement savings, you've likely heard the traditional advice about Roth conversions: pay tens or hundreds of thousands in taxes out of your own pocket to convert your accounts. But what if there was a better way?

Most retirees don't realize that Required Minimum Distributions starting at age 73 create a devastating tax cascade. Your RMDs spike your Adjusted Gross Income, pushing you into higher tax brackets.

Up to 85% of your Social Security becomes taxable. Medicare premiums can double or triple through IRMAA penalties. And your surviving spouse faces the brutal widow's penalty—forced into single filing status while dealing with the same RMD requirements.

Our advanced Roth conversion strategy eliminates this entire tax cascade without depleting your savings to pay conversion taxes. Using specialized financial products and sophisticated planning software that most advisory firms simply don't have access to, we structure conversions where insurance company bonuses—often 15% to 20% of your deposit—cover your entire tax bill.

The decisions you make about Roth conversions today will determine how much of your retirement savings actually reaches you and your heirs. Our approach focuses on maximizing tax efficiency while protecting your principal:

• Strategic Conversion Planning: Traditional advisors tell you to pay conversion taxes out of pocket, reducing your savings and eliminating future compound growth on that money. We analyze your specific situation and implement strategies where insurance company bonuses pay your conversion taxes instead. Your principal never goes below the original amount, yet you eliminate the devastating tax consequences that hit most retirees in their 70s.

• Tax Cascade Elimination: Most people don't understand how RMDs create a chain reaction of tax problems. We help you eliminate the six-part tax cascade: AGI increases that push you into higher brackets, Social Security taxation up to 85%, Medicare IRMAA surcharges, loss of tax deductions, the widow's penalty for surviving spouses, and the tax time bomb your heirs inherit under the 10-year rule.

• Personalized Roth Blueprint Analysis: Using specialized software that most practices don't have access to, we create a comprehensive analysis of your specific situation. We plug in your actual IRA balances, tax bracket, retirement timeline, and other income sources to show you precisely how much you could convert and what your tax-free income stream would look like.



• Principal Protection Strategy: Unlike traditional conversion advice that reduces your savings, our approach ensures your original principal is protected while creating 100% tax-free income for life. We demonstrate with real client examples how this strategy has saved families $500,000 to $750,000 in lifetime taxes.
  

Roth conversions shouldn't exist in isolation—they need to work seamlessly with your overall retirement strategy. Our approach differs significantly from traditional advisory firms:

1. Specialized Product Access: This strategy requires access to specific financial products that most advisory firms simply can't offer their clients. We have established relationships with insurance companies that provide the bonus structures necessary to pay conversion taxes without touching your principal.
2. Advanced Planning Software: We utilize sophisticated tax planning software that most practices don't have access to. This allows us to model various scenarios and show you the exact long-term impact of different conversion strategies on your retirement income and tax burden.
3. Coordinated Tax Strategy: We work closely with our in-house CPA to ensure your Roth conversions coordinate effectively with your other income sources, potentially reducing your overall tax burden throughout retirement while maximizing your after-tax income.
4. Legacy Protection: Recent law changes require your heirs to withdraw inherited IRAs within 10 years—often during their peak earning years when they're in the highest tax brackets. Our strategy eliminates this tax burden for your beneficiaries while providing you with tax-free income throughout retirement.

Many clients tell us they wish they had discovered this strategy sooner, as the financial impact of optimized Roth conversions can be substantial—often hundreds of thousands of dollars in tax savings over the course of retirement.

When it comes to advanced Roth conversion strategies, Leonard Financial Solutions offers distinct advantages over traditional advisory approaches:

Specialized Expertise: This strategy demands sophisticated tax planning knowledge and access to specialized financial products that most advisory practices simply don't offer. We stay current on the complex rules governing Roth conversions, RMD requirements, and the tax implications of various conversion strategies.

Fiduciary Approach: As fiduciaries, we're legally obligated to recommend what's best for your specific situation—not what generates the highest fees. Many traditional advisors resist advanced Roth strategies because they reduce assets under management, which means lower ongoing fees for them.

Proven Results: We've implemented this strategy for dozens of clients, demonstrating real-world results with specific dollar amounts of tax savings. Our approach isn't theoretical—it's proven math that's already working for high-net-worth retirees who understand the value of proactive tax planning.



Comprehensive Analysis: Unlike specialists who focus only on conversions in isolation, we integrate these strategies with your overall retirement plan, considering your income needs, estate planning goals, and the impact on your surviving spouse.

Advanced Roth conversion planning shouldn't feel overwhelming. We've created a straightforward process to help you understand exactly how this strategy could work for your specific situation:

• Complimentary Roth Blueprint Analysis: We begin with a comprehensive analysis where we plug in your actual numbers—your current IRA balances, tax bracket, retirement timeline, and other income sources. Using our specialized software, we'll show you precisely how much you could convert and what your tax-free income stream would look like.

• Personalized Strategy Development: Our team will analyze your specific circumstances and provide clear recommendations about the optimal conversion amounts, timing, and structure to minimize taxes while maximizing your after-tax retirement income.



• Implementation Guidance: Making the right decisions is only part of the equation—you also need to implement them correctly. We'll guide you through the process to ensure everything is structured properly and on schedule.

This strategy isn't right for everyone. We only work with serious investors who have at least $1 million in retirement accounts and understand the value of proactive tax planning. Due to the time and specialized software required, we can only conduct a limited number of these comprehensive analyses each month.