How Annuities Can Fund a Roth IRA Conversion Strategy

Episode 32 tackles a little-known tax strategy: using a deferred fixed annuity to pay the tax bill on a Roth IRA conversion. Lucas and Luna break down why paying conversion taxes from the IRA itself defeats the purpose, and how a separate annuity can fund the taxes while preserving the IRA growth. They walk through a real-world example with a $200,000 traditional IRA, a $40,000 tax bill, and a fixed annuity yielding 4.5% over five years. The episode explores the 'tax arbitrage' of converting at a lower rate now, the risk of tax brackets reverting in 2026, and why deferred annuities beat taxable bond accounts for this specific purpose. They also discuss surrender period timing and the importance of state guarantees. #RothIRAConversion #DeferredFixedAnnuity #TaxStrategy #RetirementPlanning #Annuities #RothConversion #TaxBrackets #TCJA #2026TaxRates #IRA #AnnuityStrategy #TaxArbitrage #FixedAnnuity #Finance #FexingoBusiness #BusinessPodcast #RetirementIncome #WealthManagement Keep every episode free: buymeacoffee.com/fexingo