The one move that could add years to your nest egg

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There’s one simple move that could make your nest egg last years longer in retirement. According to a recent report in the Wall Street Journal, that move is converting your traditional IRA or 401K into a Roth.

Why is this such a powerful retirement planning move? And how could it work for you?

Local retirement experts Tyson Thacker and Ryan Thacker from Utah’s B.O.S.S. Retirement Solutions have provided some answers. B.O.S.S. is a five-time winner of Utah’s Best of State award, and the two men are frequently featured on NBC, CBS and ABC and on local radio stations.

“We work with thousands of families throughout the Wasatch Front,” says Tyson Thacker. “And we’ve seen it over and over again. Many families are on a crash course to needlessly pay tens of thousands, if not hundreds of thousands of dollars in taxes when they retire.”

“The good news is a Roth conversion could be the secret to reducing or eliminating all of unnecessary taxes in retirement,” adds Ryan Thacker. “You don’t have to send your hard-earned savings to the IRS. Converting your traditional IRA or 401K into a Roth could help you keep more money in your pocket. And that’s why your nest egg could last years longer.”

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Would you rather pay taxes on $250,000 or $500,000? Converting to a Roth gives you that choice.

–Ryan Thacker, B.O.S.S. Retirement Solutions

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According to the Thackers, most people dramatically underestimate how big of an expense taxes will be during retirement.

“Your tax-deferred IRA or 401K is really a tax time bomb,” says Tyson Thacker. “You delayed taxes when you put money in. You’ve delayed taxes on the growth of your investments in these accounts. But when you take the money out, it’s time to pay the piper.”

“The stock market has historically doubled every seven years,” adds Ryan Thacker. “Here’s where the tax bills can get really big. So, your investment portfolio today could double in seven years. That means your taxes could double too. In 14 years, your tax bill could be four times bigger. With the potential for 20 or 30 years of retirement ahead of you, that’s a lot of future growth you could end up paying taxes on.”

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Roth conversions allow retirees to pay taxes on their savings now, so that the money can grow tax-free in the future.

–The Wall Street Journal

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That brings us back to the initial question suggested by the Wall Street Journal: How could a Roth conversion make your nest egg last years longer?

“Any money you convert into a Roth account essentially becomes tax-free,” explains Tyson Thacker. “You can take that money out in retirement, with no taxes on the withdrawals. And that’s not just the money you convert. All growth is tax-free, too. So, if your investments go up two times, four times, or even 10 times or more, you don’t pay any more taxes on that growth.”

“That’s where it can make a huge difference,” adds Ryan Thacker. “Every $250,000 today could be worth $500,000 or more by the time you’re taking it out. Would you rather pay taxes on $250,000 or $500,000? Converting to a Roth gives you that choice. How much longer do you think your savings could last if you didn’t have to pay taxes on the next 10, 20, or even 30 years of growth?”

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Many families are on a crash course with paying tens of thousands, if not hundreds of thousands of dollars more in taxes than necessary in their retirement.

–Tyson Thacker, B.O.S.S. Retirement Solutions

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What it comes down to, emphasizes the Thackers, is understanding where taxes could take a big bite out of your hard-earned money during retirement. And then finding the right tax-saving strategies to help you reduce or eliminate these taxes.

If you’d like to learn more, you can get a free and immediate copy of the report, “Three Retirement Tax Traps That Could Wipe Out Your Hard-Earned Savings.”

This free downloadable PDF from B.O.S.S. Retirement Solutions outlines three costly tax traps – and how you could avoid them. Saving on taxes with your IRA or 401K is just the beginning. There are other hidden risks that could cost you a fortune in taxes when you’re retired.

The first step to protecting your life savings from unnecessary taxes is to learn where they might strike. There’s no cost or obligation to get this valuable retirement planning guide today.

Download “Three Retirement Tax Traps” here.

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About the authors: Tyson Thacker and Ryan Thacker are the CEO and President of B.O.S.S. Retirement Solutions. They are published authors of the book, “The B.O.S.S. Retirement Blueprint,” and they’ve helped thousands of area families plan for a better, more secure retirement. They are a five-time winner of Utah’s Best of State Award and have seven offices located throughout the Wasatch Front.

This is for illustrative purposes only, results may vary. Advisory services offered through B.O.S.S. Retirement Advisors, an SEC Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. BOSS submitted applications and paid application fees to be considered for the Utah Best of State for Retirement Planning awards. The award results were independently determined by the awarding organization’s criteria (https://www.bestofstate.org/about.html) and the information BOSS provided in the applications. BOSS received the Utah Best of State award in 2019, 2020, 2021, 2022, and 2023. Our firm is not affiliated with the U.S. government or any governmental agency. Marketing materials provided by Infinity Marketing Services.