In this week’s Hidden Wealth Review, I teach about the $400 thousand mistake that we caught just in time. This message is important for those who have saved at least $200,000 in an IRA, 401(k) or other tax-deferred account. It’s also critical to people who are maximizing their 401(k) contribution. This mistake could cost you a fortune in retirement! You see, you don’t save tax when you contribute to a 401(k) or an IRA; you defer tax.
We met with a client this week who had done a sizable Roth IRA conversion earlier this year. We taught him that he could re-characterize the Roth back into a traditional IRA. Why would we suggest such a strategy?
He had estimated his tax liability on the Roth conversion to be about $32,000. All told, the taxes on the conversion were closer to $100,000. That’s because the Roth conversion would have tripled his Medicare Part B & D premiums and exposed 85% of his Social Security income to taxes. In addition, he and his wife were losing the opportunity cost of $100,000 to extra taxes and increased premiums. Once you give your money to the IRS, it’s gone, never to come back and earn interest for you.
We taught him that, by using a Hidden Wealth Tax Savings Solution, you can convert a traditional IRA into a Roth-like solution that doesn’t have all of the government regulations that are designed to siphon taxes from the account.
We taught him how to use our solution to pay the tax on the IRA conversion from someone else’s pocket so that he retains the use of the $100,000. What’s the bottom line? Using “The Rule of 72” and a reasonable rate of return, we estimated that his $100,000 would be worth $200,000 in ten years! In 20 years, that saved tax will grow to $400,000!
Learn how you can legally, ethically and morally eliminate taxes on your IRA. Let me teach you how to get your money out of your IRA, tax-free! I can also teach you how to transfer your retirement savings to your children, tax-free! This coming Tuesday, I will be teaching my Tax-Free Retirement Webinar. To register for this no-cost, no-obligation educational event, simply go to our registration website: www.RetirementProtected.com, enter the required information and submit your registration. Once you submit your information, you will receive an email containing a personal link to join Tuesday’s event.
Spouses are encouraged to attend this event together.
When you register and attend the webinar, you’ll receive an e-copy of my latest book, The Baby Boomer Retirement Breakthrough. This book teaches you the top five retirement risks and the unique solutions you can use to avoid them.
Or Call
(855) No Tax 2 U
Here’s to your Hidden Wealth,
Chuck Oliver
Best-Selling Author