Now that we've covered some of the major changes
stemming from the One Big Beautiful Bill,
let's move on to review five of the key planning strategies
that we've been talking to clients about recently.
The first up is Roth IRA conversions.
Roth IRA conversions.
I mean,
what more fun to talk about than these things.
We see this a lot.
It's important to say that when you're
considering a Roth IRA conversion,
one of the basic things that we talk about is,
look,
if you've got a sizable traditional IRA 401k combined amount,
especially if you're married,
filing jointly,
and you have two people and a couple and they're close in age,
you know,
what is it?
Roth IRA conversions.
It's always that aggregate amount of
tax deferred savings that the IRS is going to require
you to withdraw at a certain dollar amount every year.
So keeping in mind,
if you were born in 1960 or later,
then that requirement of distribution timeframe has been pushed back
until the year that you turn 75,
which allows for a lot more time.
more time for those savings to compound.
So what has come up with a lot of clients is saying,
okay,
you know,
given the size of our tax deferred savings,
I may end up with
a six figure RMD. And if I do that at that time,
certainly by the time you're 75,
you're already taking Medicare highly likely.
And,
and that six figures added,
which is dollar for dollar,
like a salary.
added to your taxable income is,
is likely to create an,
or what we call an Irma effect,
right?
So it's adding a premium to your premium to your Medicare premium,
but it's,
it's making it a little bit more expensive for your
premiums because your taxable income has increased.
So when we are considering our Roth IRA conversion,
we are looking ahead.
