How to slash your IRA tax bill

There are two ways to think about your traditional IRA. (Both are valid.)

1. Your IRA is a great way to save for retirement. You fund your account every year and watch your assets grow tax free.
2. Your IRA is like a tax time-bomb waiting to explode. When you’re older, and it comes time to cash in your holdings, you have to pay a lot of taxes on both your contributions and your  earnings. Ouch!

Well, here’s some good news. There is a proven strategy you can use to slash your future tax bill if you act before the end of the year. The strategy involves using both your traditional IRA and a Roth IRA. Together, they form a powerful tag team that can pin Uncle Sam to the mat!

You’ll get all the details in my new article titled Tax Tips: IRA Double-Win Strategy: Minimize Your Taxes Further by Rolling Them Forward and Backward.

Three ways our fact-filled article can help you:

1. We’ll tell you when converting to a Roth IRA is a smart move. If you convert your traditional IRA to a Roth IRA, you can accelerate your income-tax bill to a moment when you’re best able to absorb the hit. We’ll tell you what four such moments are when you read the full article.
2. You’ll learn how you can roll your IRAs forward and back. Uncle Sam lets you undo the conversion, or “recharacterize” some (or all) of the transaction. Which means it’s as if the IRA conversion you made never took place! This gives you valuable flexibility as you’ll discover when you read the full article.
3. We’ll give you important planning tips designed to save you money. EXAMPLE: It’s a good idea to get a tax-filing extension so you can file your return at the last minute in the years right after you convert your IRAs into Roth IRAs. This will give you until October 15 to make decisions about recharacterization. And that’s just for starters as you’ll learn when you read the full article.