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In this video, the speaker emphasizes the significance of planning within a Roth environment for wealth transfer and retirement planning, regardless of one’s current tax situation. The primary concern addressed is the efficient transfer of wealth to the next generation, especially focusing on Roth IRAs.
Compared to traditional pretax accounts, Roth IRAs offer significant advantages when passing wealth to heirs. Roth IRAs allow for tax-free distributions to beneficiaries without the need to worry about tax implications. Additionally, Roth IRAs don’t require forced distributions, even after the age of 72, providing flexibility and control over when to access funds without tax consequences.
The video underscores the importance of strategic planning to navigate market conditions, avoid high tax brackets, and mitigate Medicare surcharges. The speaker mentions various ways to fund Roth IRAs, including regular Roth contributions, Roth 401(k) contributions, the mega backdoor Roth, and evaluating Roth conversions.
Overall, the video promotes the benefits of Roth IRAs in wealth transfer and retirement planning and encourages viewers to reach out for more information, especially if they’re interested in implementing Roth strategies in their financial plans.
This video describes the importance of planning inside of a Roth environment regardless of your tax situation. Today, one of the main concerns our clients have is passing wealth on to their kids in the most tax efficient manner.
In a regular pretax environment, their kids have to pay tax is and they have to distribute the money quickly over a ten year period. When a Roth IRA is passed to kids it occurs completely tax free without any worries.
And the most important concept about a Roth IRA is there’s no forced distributions regardless of your age during retirement. This can be so important because the way a pretax account works is after the age of 72 the government will force you to take a distribution out regardless of if the market’s up or down thereby forcing you to sell at a loss.
In a Roth IRA, you have complete autonomy and control if you take the money. When you take the money, there’s no taxes zone. This really helps clients plan effectively and navigate not only market conditions but also avoid high tax brackets and Medicare surcharges.
The list goes on. As you can tell, we’re very passionate about Roths and we find there’s several ways to fund Roths regardless of your income tax bracket a regular Roth contribution if you are allowed to by the IRS.
The second way is through Roth 401K contributions and the third way is through the mega backdoor. Roth sounds very complicated. That’s some of the nerdy stuff that we love doing on our team. Reach out to us if you’re interested more.
And then the fourth way is evaluating for Roth conversion makes sense if your tax bracket is lower than it’s expected to be in the future.
In 15 minutes we can get to know you – your situation, goals and needs – then connect you with an advisor committed to helping you pursue true wealth.
EWA, LLC dba Equilibrium Wealth Advisors, is an SEC-registered investment advisory firm providing investment advisory and financial planning services to clients.
Investments in securities and insurance products are not insured by any state or federal agency.
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