Message Font: Serif | Sans-Serif
No. of Recommendations: 2
If the estate will incur estate taxes then converting to a ROTH has the advantage of decreasing estate taxes. Prepaying income taxes decreases the estate taxable amount.

At least for Federal estate taxes, I doubt that pre-paying the taxes by doing Roth conversions would help much, unless the owners wanted to go way into the 37% bracket. Federal estate taxes don't kick in until $11.4MM if single, and $22.8MM if MFJ.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.