Most business owners don’t realize this:

Your 401(k), IRA, cash balance plan, and deferred comp aren’t “tax shelters”…

They’re ticking tax time-bombs waiting to explode later in life.

Eventually, the IRS forces you to take distributions — and those withdrawals are taxed as ordinary income.

That’s why we help clients convert their pre-tax accounts into Roth IRAs, where:

• growth is tax-free
• withdrawals are tax-free
• and there are no forced distributions

But here’s the part most people miss:

You don’t have to pay taxes on the conversion.

With the right planning, you can erase the income created by a Roth conversion and get it done tax-free.

Here are a few ways we do it:

🔹 Bonus depreciation from real estate

Cost segregation studies can create six-figure deductions, which directly offset conversion income. (Need REPS or STR)

🔹 Losses passed through from tax-aware hedge funds

Some strategies can realize ordinary losses — perfect for neutralizing Roth conversion taxes.

🔹 Business Net Operating Losses (NOLs)

If a client has a year with lower profits (or a loss), we use that window to convert aggressively.

🔹 Charitable deduction stacking

Front-loading gifts into a Donor-Advised Fund (DAF) produces a big deduction all at once.

This is what tax planning actually looks like — not guessing, not hoping, but engineering outcomes.