A strategic approach to moving your retirement savings from taxable to tax-free
Where You Are Now
Your traditional IRA, 401(k), 403(b), or other pre-tax retirement accounts hold money that has never been taxed. Every dollar withdrawn will be taxed as ordinary income — and Required Minimum Distributions (RMDs) starting at age 73 will force withdrawals whether you need the money or not.
The Strategic Bridge
Using the Model Q Tax Plan, we analyze your current and projected tax brackets to determine the optimal amount to convert each year. By "filling up" lower brackets strategically over multiple years, we minimize the total tax paid on conversions — often saving hundreds of thousands compared to unplanned conversions or RMD-forced withdrawals.
Where You Want to Be
Once in a Roth IRA, your money grows tax-free and withdrawals are tax-free. No RMDs, no taxable income, no impact on Social Security taxation or Medicare premiums. Your heirs also inherit Roth accounts tax-free (though they must distribute within 10 years under SECURE Act rules).
The Tax Cuts and Jobs Act (TCJA) reduced tax rates across most brackets. These lower rates are scheduled to expire after 2025, meaning tax rates will increase. Converting now locks in today's lower rates.
Required Minimum Distributions start at age 73 and increase each year. Large pre-tax balances can force you into higher brackets, increase Social Security taxation, and raise Medicare premiums.
Roth IRAs have no RMDs during your lifetime, grow tax-free, and pass to heirs tax-free. Converting now pays the taxes so your heirs don't have to.