Roth Rescue Strategy
Why more Americans with $250K+ saved are moving to a Roth-based retirement
Discover how you may be able to protect your retirement savings from required minimum distributions and future tax increases.
Why now
Several powerful trends are aligning
Tax rates remain relatively low, but policymakers continue to explore changes that could limit this lesser-known Roth strategy. The next few years may be a meaningful window to safeguard your retirement savings.
- ✓National debt continues to rise, increasing the pressure on future tax rates
- ✓Tax rates today remain relatively low compared to historical peaks
- ✓Traditional retirement accounts require mandatory withdrawals (RMDs)
- ✓Heirs may face significant taxes on inherited traditional accounts
- ✓Roth accounts are not subject to required minimum distributions
The Strategy
What is a Roth Rescue?
A four-step approach designed to convert highly-taxed retirement assets into tax-free growth while managing the cost of the conversion itself.
01
Shift
The strategy moves funds from a traditional retirement account into a Roth-style account.
02
Offset
Unlike a standard conversion, qualified participants may be eligible to offset a significant portion of the tax cost.
03
Grow
Funds grow tax-free; qualified withdrawals are tax-free when structured properly under current IRS guidelines.
04
Control
You gain more control over the timing of retirement income and the tax rates you pay on it.
With a Roth Strategy
- ✓You may be able to shift highly taxed retirement assets into an account that offers tax-free growth potential
- ✓You may qualify for strategies that help offset conversion-related tax costs
- ✓Your investments can grow tax-free, and qualified withdrawals in retirement may also be tax-free when structured under current IRS guidelines
- ✓You can help preserve your legacy by passing on assets with potential tax advantages for your beneficiaries
- ✓You won't be subject to required minimum distributions, giving you more control over withdrawal timing and tax exposure
Important Considerations
Is there a catch?
There are two things to know before you start.
First
This strategy is generally more suitable for individuals with at least $250K in retirement savings.
Second
It's not something you can typically set up on your own. It requires working with a qualified financial professional to structure and implement properly.
30-Second Pre-Qualification Survey
See if a Roth Rescue fits your situation
Answer a few quick questions. If you qualify, Abi's team will reach out to schedule a complimentary suitability call.
This page is for educational and informational purposes only and is not tax, legal, or investment advice. Eligibility for any specific strategy depends on your personal financial situation and is not guaranteed. Roth conversion tax costs, if any, depend on individual circumstances. Review important disclosures before making decisions.