Why Now Is the Critical Time for Roth Conversion Tax Savings

Roth IRA Conversion Timing

A massive change is coming to retirement planning, and the clock is ticking. The Tax Cuts and Jobs Act of 2017 currently expires at the end of 2025, meaning millions of Americans could face significantly higher taxes in retirement. But there’s still time to act if you move quickly.

And, tax rates are currently at historic lows, but they won’t stay there forever. With the national debt surpassing $35 trillion at time of writing and climbing fast, future tax increases aren’t just possible – they’re virtually certain. The only questions are when and by how much.

Understanding Your Retirement Tax Time Bomb

Your IRA and 401(k) aren’t entirely yours. Think of them as joint accounts with Uncle Sam. Every dollar you withdraw in retirement will be taxed as ordinary income – and potentially at much higher rates than today.

Over 70% of Americans worry their retirement savings will be eaten up by taxes, according to Money Magazine. This worry isn’t unfounded. Let’s look at why.

The Compound Effect of Tax Deferral

Consider Sarah and Brian’s story. This couple had saved $600,000 in their pre-tax retirement accounts – a significant achievement. But here’s the shocking part: At just 5% annual growth, that money would grow to over $2 million by age 85. Without proper planning, they’d owe taxes on the full $2 million – not just their original $600,000.

That tax bill could devastate their retirement dreams. Instead of traveling, helping grandchildren with college, or enjoying retirement hobbies, they could find themselves writing massive checks to the IRS.

Real People, Real Savings Through Roth Conversions

B.O.S.S. Retirement Solutions has helped thousands of families protect their retirement from future tax increases. Here are some real examples (names changed for privacy):

• Bill and Sandy, both 68, had $240,000 in tax-deferred accounts. Through careful planning with B.O.S.S. Retirement Solutions, they saved over $70,000 in taxes. That’s money they now use to help their grandchildren and travel.

• Dan and Ella, age 64, had $300,000 saved. B.O.S.S. Retirement helped them save $189,296 in taxes. Instead of giving that money to the IRS, they’re using it to fulfill their retirement dreams.

• Sarah and Brian saved nearly half a million dollars in future taxes through strategic Roth conversions. That’s not just money saved – it’s freedom to live the retirement they always imagined.

Why Convert to a Roth Now?

The current tax environment presents a unique opportunity. The Tax Cuts and Jobs Act of 2017 currently expires at the end of 2025, meaning millions of Americans could face significantly higher taxes in retirement. Plus tax rates are at 40-year lows, but with the national debt soaring past $35 trillion, today’s historically low tax rates won’t last forever. When rates increase, the window of opportunity could slam shut.

Think about this: Even with a moderate 5% growth rate, every dollar in your retirement account could be worth $2.50 in 20 years. With a traditional IRA, you pay taxes on the full $2.50. With a Roth, you only pay taxes on the original dollar, and the $1.50 in growth is completely tax-free.

How B.O.S.S. Retirement Solutions Can Help You Decide

While B.O.S.S. Retirement Solutions typically works with clients having $500,000 to several million in retirement savings, we understand the importance of tax planning at all levels. That’s why we offer our services to anyone with at least $200,000 in retirement savings.

Here’s our process:

1. Initial Consultation: We sit down with you and gather basic information about your retirement accounts and goals.

2. Deep Dive Analysis: Our team runs comprehensive numbers showing potential tax savings.

3. Custom Strategy Development: We create tax-saving strategies specifically for your situation.

4. Clear Explanation: We walk you through every option, showing exactly how much you could save.

5. Implementation Support: If a Roth conversion makes sense, we’ll help you execute it properly.

Strategic Timing: Splitting Your Roth Conversion

One powerful strategy B.O.S.S. Retirement Solutions often explores with clients is splitting a Roth conversion across multiple tax years. Here’s why this matters for your retirement.

Understanding Tax Brackets

Converting your entire retirement account in one year could push you into a higher tax bracket, unnecessarily increasing your tax burden. But there’s a smarter way.

Let’s look at how this worked for Dan and Ella. They had $300,000 in their tax-deferred accounts. Instead of converting everything at once and facing a massive tax bill, B.O.S.S. Retirement Solutions helped them split their conversion strategically. This approach saved them $189,296 in taxes – money they now get to keep for their retirement dreams.

Why Timing Matters

The more you convert in a single year, the more likely you are to push at least some of that conversion into a higher tax bracket. This is especially true if you’ve got a bigger retirement account. Remember, conversion amounts count as income in the year you convert.

Future Tax Law Changes

Tax laws are always subject to change. What works today might not be available tomorrow. That’s why it’s crucial to work with experts who understand not just the current tax code, but how to adapt strategies as laws evolve.

Not All Roth Conversion Analysis Is Equal

Many advisors charge up to $3,200 for this type of analysis, but B.O.S.S. Retirement Solutions offers it completely free. We believe everyone deserves to understand their tax exposure before it’s too late to act.

The Cost of Waiting to Convert

The longer you wait, the more tax exposure you face. Remember, tax rates are historically low now, but with $35 trillion in national debt, they’re virtually certain to increase. The only question is when.

Every year you delay means:

• More compounding in tax-deferred accounts
• Higher potential tax bills in retirement
• Less control over your retirement lifestyle
• Fewer options for tax planning

Take Action Now

Don’t wait until tax rates increase. Contact B.O.S.S. Retirement Solutions today for your free analysis. Our expert advisors will help you make an informed decision about protecting your retirement savings from future tax increases.

Remember: It’s not what you save for retirement – it’s what you keep after taxes that matters. With tax rates at historic lows and the national debt soaring, there’s never been a more critical time to examine your retirement tax strategy.

Contact B.O.S.S. Retirement Solutions at 800.637.1031 or visit
www.bossretirement.com to schedule your free tax savings analysis. This comprehensive analysis is valued at over $3,200 but is being offered free to help families prepare for coming tax changes. Don’t miss this opportunity to protect your retirement from future tax increases. If you’ve saved at least $200,000 for retirement, call 800.637.1031 now to schedule your free analysis.