We’ve spent decades helping many Floridians manage their estate plans, so we have experience with what works. If you’re considering an IRA conversion for your estate, you need to hear about the pros and cons from our team of tax advisors. This guide covers every benefit and potential drawback you need to know to make a decision.
Maggi Tax & Wealth Advisors offers professional estate planning and Roth IRA conversion services in Tampa. Schedule a consultation today!
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The Pros of a Roth Conversion For Your Estate
Many high-net-worth individuals in Tampa choose to do an IRA conversion for their estate because they find the many benefits irrefutable:
Tax-Free Inheritance
Converting your savings into a tax-deferred IRA now will grant your beneficiaries tax-free assets when they claim your inheritance.
Lower Tax Fees
Taxes have a tendency to rise over time. Paying taxes on an IRA conversion while rates are lower now will save you money on higher fees in the future. This means more money to give in your inheritance.
No RMDs
IRAs are not subject to required minimum distributions (RMDs). With an IRA conversion for your Tampa estate, you can keep your savings in your account for more wealth to gift to your beneficiaries.
Reduced Estate Taxes
Your assets are usually taxed at the time of death. IRA conversions relieve some of the tax burden at the time of transfer for minimal estate tax fees when that time comes.
Learn more > Roth Conversions & Legacy Planning: 4 Tips For Winning The Long Game
The Cons of a Roth Conversion For Your Estate
An IRA conversion may make sense for most estate plans in Tampa, but there are still some possible scenarios to consider for optimal private wealth management:
Heirs In Lower Tax Brackets
If you anticipate your beneficiaries will be in a lower tax bracket at the time of inheritance, the amount of estate taxes they’re required to pay may be less than what you would be paying for an IRA conversion today.
Less Income In Retirement
It’s not uncommon for Tampa retirees to make less in retirement than they did during employment, which means they would have paid more on conversion fees during their highest-earning years.
In this scenario, waiting until you’re in a lower tax bracket during retirement may be the best time for an IRA conversion for lower fees.
Lack of Current Funds
You should not consider an IRA conversion if the conversion fee will strain your finances. Placing yourself in a tough spot now will make it more difficult to save for the foreseeable future.
Make the Right Choices For Your Estate. Meet With Maggi Tax & Wealth Advisors For Roth Conversions and Estate Planning Services You Can Trust!
Still not sure if an IRA conversion is the right choice for your estate? Meet with Maggi Tax & Wealth Advisors when you call (727) 799-1701 for a consultation. From estate planning services to Roth IRA conversion services, we’re the ones you can trust for expert wealth planning in Tampa!
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