Pay ZERO Capital Gains Tax vs Roth Conversions in Retirement: How to Determine Which is Best

Listener Drew asks about a tax strategy for juggling capital gains and Roth conversions. While it can be a complicated question – especially when large accounts are involved – James provides some general guidelines that can be helpful for anyone with similar gnarly tax strategy challenges in retirement. In this episode, we’ll cover the extent to which required distributions will be an issue, what you need to alleviate that issue, and the timeframe within which you have to do that.James explains how to work backward to project your various tax brackets and determine how to prioritize tax gain harvesting, Roth conversions, and other tax strategies.Questions Answered: What is tax gain harvesting?What is the tax planning window and how do I use it to my advantage?Timestamps:0:00 - Drew’s question2:50 - Determine use for each asset5:59 - Tax gain harvesting11:10 - Back to Drew15:30 - James’ priorities for Drew18:41 - Usually not either/or20:07 - Working backwards24:50 - General principles29:50 - Tax planning window32:16 - SummaryCreate Your Custom Strategy ⬇️Get Started Here.Join the new Root Collective HERE!