While most people associate estate planning with wills and trusts, smart estate planning also includes tax strategy—especially when it comes to retirement accounts.

Thanks to the One Big Beautiful Bill Act (OBBBA), which raised the federal estate and gift tax exemption to $15 million per person, many high-income earners are now looking to pair their estate plans with Roth conversions to minimize long-term taxes and maximize generational wealth.

If you have significant savings in pre-tax retirement accounts (like traditional IRAs or 401(k)s), now is the time to consider how Roth conversions can align with your estate plan.

What Is a Roth Conversion?

A Roth conversion means moving money from a tax-deferred account (like a traditional IRA) to a Roth IRA, which grows tax-free and allows for tax-free withdrawals in retirement.

When you convert, you pay income tax now, but you avoid taxes on all future growth and withdrawals.

Why It Matters for Estate Planning

When you pass on a traditional IRA to your heirs, they inherit a tax liability—and under the SECURE Act, they generally must withdraw all funds within 10 years of your death, often during their highest earning years.

In contrast, if you pass on a Roth IRA:

• It continues growing tax-free
• Withdrawals are tax-free
• It gives your heirs more flexibility and less tax burden

How the OBBBA Enhances Roth Strategy

Because the OBBBA locks in a high estate exemption, wealthy families can:

• Use Roth conversions now to reduce future estate values (which may later be taxed if the exemption is reduced)
• Pair Roth conversions with trust strategies to control how heirs access the money
• Convert gradually over several years to manage income tax brackets

This creates a triple win:

1. Lower long-term taxes for heirs
2. Strategic use of current exemption
3. Flexibility to shift retirement assets into protected estate planning vehicles

Who Should Consider a Roth Conversion?

✅ Professionals in their 50s or 60s with large IRAs
✅ Retirees with low current income and large pre-tax accounts
✅ Business owners who sold in 2024–2025 and now face high taxes
✅ Anyone whose estate might exceed $15M if exemption laws change in the future

How Barina Law Group Can Help

We collaborate with your CPA and financial advisor to:

• Time Roth conversions to your bracket and plan
• Align them with trusts, beneficiaries, and legacy goals
• Protect retirement assets for the next generation

Even modest Roth conversions can create massive tax savings over time and preserve the value of your estate for your family.

📞 Call to Action

Want to align your tax and estate strategies? Call (254) 699-3755 or visit www.bobbybarinalaw.com to schedule a personal planning session.