THE NEW HOLISTIC RETIREMENT • 67
Summary: Total Tax Burden Analysis $700,000 IRA | 5% Pre-Tax Growth Rate
Keep Qualified Account
Convert to Roth
Taxes Paid on Conversion Taxes Paid on Roth Account Growth
Total Taxes Paid on RMDs
$230,390
$175,000
Taxes Paid on Growth of Reinvested RMDs Taxes Paid by Heirs on Remaining IRA Value at Death
$101,886
$0
Taxes Paid on Remaining Roth Account Value at Death
$160,589
$0
TOTAL TAXES PAID
$492,865
$175,000
Example shown for illustrative purposes only and is not guaranteed. Actual results may vary. Now , I woul d tak e a conservat ive approa ch t o t his conversion b y doing tw o t hings. First , I woul d pay t he tax es owed on these funds out of the money I rolled over fro m my IRA, and then deposit the net amount in my Roth account. Second, I know that if I withdrew $700,000 fro m my IR A all at once, I would likely push myself into a higher tax bracket with
Made with FlippingBook interactive PDF creator