"One of the points we make with advisors is to not overstate the offset value of the IRD deduction," said Norquist. "Whereas the Roth conversion scenario can result in immediate tax savings at the time of death in the form of reduced estate tax liability, the IRD deduction for beneficiaries with respect to traditional IRA assets will generally be recovered gradually over multiple decades (assuming the beneficiary is taking minimum distributions), thereby decreasing the overall net present value of the IRD deduction."
In short, he said, "The estate tax implications of a Roth conversion are potentially significant."
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