Roth IRA Conversion Strategy: How to Fill Your Tax Brackets Before RMDs and Cut Lifetime Taxes

Video Description

Most people think the key to retirement tax planning is simply deferring taxes as long as possible. But after working with hundreds of retirees, I've learned that the real opportunity isn't in deferring—it's in strategically choosing when to pay taxes, at what rates, and on your terms rather than the IRS's timeline. In this video, I walk you through a Roth IRA conversion framework we call "filling the brackets"—a strategy that could potentially help you pay substantially less in lifetime taxes. ========== Work With Us → https://www.covenantwealthadvisors.com/free-retirement-plan Check out our Covenant Wealth Advisors Youtube Channel → ⁨https://www.youtube.com/@covenantwealthadvisors ========== You'll learn why traditional IRAs and 401(k)s create what I call a "tax-deferred trap" and how Required Minimum Distributions at age 73 or 75 can force you into higher tax brackets than necessary. We explore the counterintuitive logic of paying some taxes now at known, lower rates rather than being forced to pay more later at unknown, potentially much higher rates. Using a hypothetical example, I show how a couple in their mid-sixties could systematically convert traditional IRA assets to Roth accounts during their "gap years"—those years after retirement but before Social Security and RMDs begin—potentially resulting in significant lifetime tax savings. You'll also learn how to calculate your own conversion opportunity, the critical importance of paying conversion taxes from outside your IRA, and key considerations like the pro-rata rule, state taxes, and Medicare IRMAA surcharges that can complicate the strategy. =========== 0:00 The Tax Mistake Most Retirees Don't See Coming 1:45 What a $1.5M IRA Really Costs You 3:28 "Filling the Brackets" — The Strategy That Changes Everything 6:42 Real Example: How One Couple Saved Six Figures 8:43 Three Traps That Could Ruin Your Plan 15:09 Your Action Plan Before December 31st =========== Disclosure: The hypothetical examples presented in this video, including "Chris and Cindy," are for illustrative purposes only and do not represent actual client results. Tax brackets and deduction amounts referenced are based on 2026 projections and are subject to change. Actual results will depend on your individual circumstances, future tax laws, and market conditions. Covenant Wealth Advisors is a registered investment adviser. The information presented in this video is developed from sources believed to be providing accurate information and is for educational purposes only. This content should not be considered investment, tax, legal, or financial planning advice, nor a solicitation for the purchase or sale of any security. The information provided is not intended to be used for the purpose of avoiding federal tax penalties. Because we don't know your individual circumstances, this general information may not apply to your situation. Before making any financial decisions, consult with a qualified financial advisor, CPA, attorney, or other appropriate professional who can evaluate your specific needs. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results, and no investment strategy can guarantee a profit or protect against loss in periods of declining values. For more information about our firm, including our services and fees, please visit our website or review our Form ADV, available at adviserinfo.sec.gov.