243: You Have a Million-Dollar IRA. Is a Roth Conversion Worth It?

If you have a large IRA balance and retirement is getting closer, your tax bill may be bigger than you expect. This episode breaks down why taxes catch so many retirees off guard and what you can do about it now.Ready to take your next step in retirement planning? Schedule a RetireReady Call at https://bit.ly/3Sy2vxlDownload your copy of the Retiring Today Magazine at https://bit.ly/4nDw5eELoren Merkle, Molly Nelson, and Chawn Honkomp walk through a hypothetical example of a 62-year-old with a $1 million IRA to show how an intentional Roth conversion strategy can reduce their total tax bill over a 20-year retirement. The numbers are specific, the strategy is practical, and the example makes it easy to see how this could apply to your own situation.The conversation also covers how Required Minimum Distributions force taxable income whether you need the money or not, why Social Security timing affects your tax picture more than most people realize, and why historically low tax brackets right now create a window worth paying attention to.The episode closes with six action steps you can take now. Getting a retirement tax strategy, running a Roth conversion analysis, coordinating Social Security, reviewing your investment purpose, planning for health care costs, and thinking about your legacy.--Loren MerkleCFP®, RICP®, Certified Financial Fiduciary®https://merkleretirementplanning.com/staff-members/loren-merkle/Chawn HonkompCFP®, RICP®, Certified Financial Fiduciary®, CPA® https://merkleretirementplanning.com/staff-members/chawn-honkomp/Molly NelsonHost of Retiring Today with Loren Merklehttps://merkleretirementplanning.com/staff-members/molly-nelson/-- This video does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service by Merkle Retirement Planning LLC, Elite Retirement Planning LLC, MRP Insurance LLC, or any other third party regardless of whether such security, product or service is referenced in this episode. Furthermore, nothing in this episode is intended to provide tax, legal, or investment advice and nothing in this episode should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. Merkle Retirement Planning, LLC does not represent that the securities, products, or services discussed in this episode are suitable for any particular investor. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your business advisor, attorney, or tax and accounting advisor regarding your specific business, legal or tax situation.Medicare services provided through MRP Insurance, LLC. Any and all other services related to insurance are an outside business activity and are not offered through or supervised by Elite Retirement Planning, LLC. MRP Insurance, LLC, is not affiliated with or endorsed by any government agency. This is an advertisement for insurance. By responding to the ad, you will be put in contact with a licensed insurance agent offering Medicare Advantage Plans, Medicare Supplement Plans, and Prescription Drug Plans. We do not offer every plan available in your area. Currently we represent [5] organizations which offer [22] products in your area. Please contact Medicare.gov, 1-800-MEDICARE, or your local State Health Insurance Program (SHIP) to get information on all of your options.