"How Roth IRA Conversions Can Limit the Tax Hit From RMDs" ...But far more can be done!

I find that RMDs are one of the least understood & not well-planned tax events in many taxpayer’s lives. At 72, the law requires that most people begin taking ...RMDs, from these tax-deferred accounts (401k, IRA, similar) while easily causing a retiree to pay more in #tax then they should.

The article talks about doing Roth Conversions closer to #retirement, which if done properly can be a very good idea.

However, there is much more taxpayers can do during their careers with Roth funds resulting in far less or no tax. Here's 3 quick strategies:

1. Life's a journey & things happen so in lean years (recession, job loss) a Roth Conversion could be taxed are far lower rates then later.

2. In lean years or years with reduce income due to a life event (unpaid or reduced pay for sickness, injury, maternity, etc.) classify more or all your 401k contributions as #Roth’s (non RMD funds).
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3. I'm a huge fan of Back Door Roth’s as there a great way to diversify your retirement & increase Post-Tax (non RMD funds) accounts, all while being able to make contributions beyond the W2 limits.

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#ramlcpa #tax #taxplanning #401k #IRA #Roth #rmd #rmds #taxsavings #retirementstrategy
​ #retirementplanning #retirementgoals #taxstrategy #retirementplan#RothConversion