Not for federal taxes - but you may be subject to state estate taxes and then the answer would change.Not to hijack this thread, but I'm curious about this related scenario:
- An 80 year old (assume retired) that has assets above the current estate tax exemption amount
- Has ~$7MM in traditional IRA and zero Roth
- Is in highest federal/state tax bracket and would remain that way
- Has funds in taxable to cover Roth conversion cost
- Heir(s) would likely be in highest tax bracket as well
Is it sensible to convert the entire IRA to Roth (allowing it to be fully funded by paying tax out of taxable) as a strategy to reduce the potential estate tax bill?
Statistics: Posted by smitcat — Fri Jan 24, 2025 6:32 pm