03/22/2026
Since the beginning of 2026, we have been collaborating with our high net-worth IRA/401k clients to address their most significant impact on retirement: taxes. Many of these individuals lack a structured plan to minimize or eliminate tax exposure, primarily due to a lack of awareness or inadequate guidance from their CPA and/or advisors.
Consider the following scenario: if we convert your $1.0M+ IRA/401k to a Roth, the IRS will treat this as income, potentially resulting in a 30-40% tax loss in one year. Conversely, gradual conversions over several years to remain below higher tax brackets may yield insignificant or inefficient tax savings, which could also impact your RMD, lifetime IRMAA surcharges, or taxes on Social Security income.
However, there is a strategic approach to mitigate this tax burden - not by avoiding taxes, but by leveraging provisions in the New OBBBA (One Big Beautiful Bill Act) of 2025 tax code to offset this income.
By pairing your Roth conversion with our proprietary strategy, which creates a substantial upfront tax offset, we can potentially reduce the taxable amount of your $1.0M+.
As a result, instead of paying taxes on the full amount, you may only be taxed on a portion, potentially saving hundreds of thousands of dollars.
Ultimately, you will have transferred funds into a tax-free Roth IRA, reduced your lifetime tax exposure, and created an income-producing asset. Furthermore, your legacy may be passed on to your beneficiaries tax-free.
To proceed, we need to coordinate this strategy with a CPA and structure the timing correctly. This is where most individuals encounter difficulties, and where we excel.
If you are interested in learning more about this strategy, please feel free to contact me directly, and we can schedule a Zoom meeting or an in-person meeting at our office to discuss further.
