agree - but in most likelyhood - even the surviving spouse shouldn’t technically touch those Roth monies (set aside solely for heirs) for Roth to grow/compound with a long enough runway.I think you should include the possibility that a spouse may outlive the other for a significant period of time. If the surviving spouse stays single, the marginal tax rates may increase significantly. If the income doesn’t change much (RMDs + SS + pensions + other taxable distributions) after the death of a spouse Roth conversions would work out well.Sounds like - if the main goal of Roth-monies is for heirs., and never need to be spent by current owners - the plan likely sounds good (of course: with the assumptions that your kids ‘then D+10 years) tax bracket is definitely higher than your marginal conversion rate, your joint life span is rather long, and also your taxable monies you used to pay conversion-taxes doesn’t have built in tax-liabilities, no special need kids, and inflation and market returns are decent over that period; among other things)
Yes, Roths can be a good thing - but we don’t want to be (way in future) greedy converters. We love MBR, ofcourse HSAs, and taxable brokerage accts too (can take some moonshots, TLH, multiple cost-basis resets upon joint-D, gifting, limited low-cost margin, DAF purposes, wider-investment universe, including private type investments, among other benefits)
Tax diversification helps, a lot.
The widow tax torpedo- we all understand. There are ways to mitigate those - don’t solve that problem solely with Roth tool (got Roth hammer !?). As for widow, especially bit too early in age - the D-spouse should have taken/maintained a cheap level-term policy - as counterweight against increased tax burden. Then there is step-up basis cost-basis reset, higher of
the SS, possibly survivor pension, possibly less number of IRMAAs to pay, if properly planned - primary home gain higher tax exclusion limits, possibly retain/regain higher estate tax limits - among a few things - which could mitigate widow’s higher-bracket impacts (no can’t bring back expired spouse - short of it, there are some mitigation planning action items which could lessen the widow’s financial & tax impacts)
Agree - it does impact - but, simply don’t stand there, do take some proactive planning and reactive action items. It’s NOT all doom and gloom, nor RMD torpedoes flying in every which way; again, given those items are taken care properly.
Statistics: Posted by sc9182 — Sat Nov 01, 2025 10:21 pm — Replies 183 — Views 29285