Who Pays the Tax? Modeling IRA distributions in a post-SECURE Act environment

Higher numbers on the RMD factor table, later starting ages for RMDs, and a 10-year drawdown period for beneficiaries. Nearly every working American over the last half century has some form of tax-deferred retirement savings, but now the shape of the distribution phase has changed substantially. We'll look at a multi-generational approach to tax minimization and discover where Roth conversions can play a key role - as well as why many times they should be avoided.

3 Learning Objectives:

1. Observe a model of estimating the present value of all future taxes paid from tax deferred accounts, and how this tax is shared between two generations of taxpayers

2. Measure the effectiveness of Roth conversions and how they affect taxes paid by both generations

3. Discover that two different perspectives on tax minimization can lead to very different strategies with regard to Roth conversions