Episode 271: Mailbag: - Smart Estate Planning & Tax Strategies for a Secure Legacy

Taxes don’t stop when your paycheck does, and they certainly don’t skip your heirs. In this episode, David tackles two common listener questions that reveal just how much tax strategy plays into smart retirement and estate planning. If you’ve been worried about how much your kids will owe in inheritance taxes or if you’re sitting on a pile of tax-deferred savings, David offers practical tips on ways to help you avoid getting a surprise tax bill.

David walks through using life insurance to help shield his heirs from future estate taxes, and a concern over having nearly all his retirement savings in 401(k)s and IRAs. You’ll learn why estate tax thresholds are higher than most people realize and how to help maximize what you keep, and what your heirs receive. If you're nearing retirement or thinking about legacy planning, this episode is a must-listen to help you avoid costly mistakes and build a smarter financial future.

Here’s some of what we discuss in this episode:

🧾  Estate taxes: Do you need to worry?

💡 When a life insurance policy may be a smart estate tool

🏦 Roth conversions before RMDs—smart or not?

👀 Why your $1M IRA isn’t fully yours

📉 Gifting strategies to help reduce your taxable estate now

Please remember that converting an employer plan account to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including (but not limited to) a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.