Firm Introduces Multiple IRS-Compliant Approaches to Reduce, Recover, and Offset Roth Conversion Taxes
MCKINNEY, TX, UNITED STATES, February 27, 2026 /EINPresswire.com/ — As required minimum distributions (RMDs) loom and future tax rates remain uncertain, high-net-worth retirees are seeking proactive strategies to control how and when they pay taxes on retirement assets. Retirement Tax Consultants today announced expanded capabilities designed to help qualifying clients reduce IRA conversion taxes by a minimum of 35% before RMDs begin — with additional strategies that may lower total lifetime tax exposure by 50% or more.
A 20-YEAR STRATEGY BUILT AROUND IRS-RECOGNIZED VALUATION PRINCIPLES
The cornerstone of the firm’s approach is its IRA-LLC valuation discount strategy. This structure applies IRS-recognized valuation discounts to limited liability company (LLC) interests held inside a self-directed IRA (SDIRA).
With a certified third-party appraisal, accepted discounts — including discount for lack of control (DLOC) and discount for lack of marketability (DLOM) — may be applied to reduce the fair market value (FMV) of assets converted to a Roth IRA.
By lowering the taxable value of the conversion, qualifying clients can reduce associated income taxes by at least 35%, often producing substantial lifetime tax savings.
“While the IRA-LLC strategy itself is considered very low risk when properly executed, we have an attorney on staff who is familiar with and will back the structure,” said David Hyden, President and Founder. “The strategy has been used for more than 20 years, and no properly supported Roth conversion valuation discount has been challenged by the IRS.”
BUILT-IN LEGAL SUPPORT AND VALUATION DEFENSE
IRA-LLC clients receive:
Six-Year Valuation Defense — Legal defense of the valuation discount in the event of an IRS inquiry, supported by current legal precedent and case law
Legal Opinion Letter Access — Secure, read-only access to formal opinion letters supporting IRA-LLC valuations
Complimentary Legal Consultation — A 20-minute consultation with the firm’s attorney included with each Roth conversion engagement
“This is one of the rare areas where the tax code gives retirees meaningful control over when and how they pay retirement taxes,” Hyden said. “The government’s default plan is to collect taxes over a lifetime at unknown future rates. A Roth conversion allows clients to lock in today’s historically low rates and eliminate or reduce as many as eight different retirement taxes.”
Hyden added, “If a client qualifies for our valuation strategy, we can reduce the conversion tax impact by at least 35%. With the addition of our new layered strategies, many clients can reduce their total tax burden by 50% or more.”
EXPANDED STRATEGIES: REDUCE, RECOVER, AND OFFSET ROTH CONVERSION TAXES
In addition to valuation discounts, Retirement Tax Consultants now offers:
Bonus Recovery Strategy — Designed to help qualifying clients recover a portion of the Roth conversion tax already paid
Two Distinct Tax-Offset Strategies — Structured to offset conversion taxes using IRS-compliant approaches, including bonus depreciation and excess business loss (EBL), coordinated within the client’s broader retirement tax and income plan
“These additional strategies allow us to engineer Roth conversions with far greater precision,” Hyden said. “Instead of relying on a single technique, we can layer reduction, recovery, and offset strategies to create a customized solution for each client.”
The firm positions itself as a strategic bridge between accountants and financial advisors, focusing exclusively on retirement tax strategies that are often overlooked in traditional planning.
ROTH CONVERSION ANALYSIS: KNOW BEFORE YOU CONVERT
For retirees unsure whether a Roth conversion is appropriate, the firm provides a detailed Roth Conversion Analysis comparing:
The Cost of Converting
vs.
The Lifetime Cost of Not Converting
“Many retirees suspect they should convert but don’t know for certain,” Hyden explained. “What most don’t realize is that choosing not to convert can result in decades of avoidable taxes. Our IRA Tax Analysis includes future RMD projections & lifetime taxes, Medicare IRMAA Impact on Social Security taxation, Detailed Single & Multi-year Tax Projections, Five Roth Conversion Scenarios and more.”
The analysis illustrates which path is projected to produce the lowest lifetime tax burden.
WHY TIMING MATTERS
Traditional IRAs expose retirees to several long-term risks:
– Rising future tax rates
– Required minimum distributions (RMDs)
– Taxation of Social Security benefits
– Medicare IRMAA surcharges
– Ongoing fees on the IRS-owned portion of IRA balances
– The Widow’s Penalty I & II
– Heavily taxed inheritances under the 10-year payout rule
“One advantage of converting early in 2026,” Hyden noted, “is that clients who meet IRS safe-harbor requirements may allow post-conversion assets to grow tax-free for up to 15 months before taxes are due in April 2027.”
STRATEGY HIGHLIGHTS
Minimum 35% reduction in taxable conversion value using IRS-recognized valuation discounts
Additional strategies to recover and offset Roth conversion taxes
Audit-ready documentation with third-party appraisal support
Attorney-backed valuation defense and consultation
Coordinated execution with CPAs and financial advisors
ABOUT RETIREMENT TAX CONSULTANTS
Retirement Tax Consultants, LLC specializes exclusively in Retirement Tax Engineering, Roth Conversion Analysis, and Retirement Income-Efficiency Planning. The firm bridges the gap between financial advisors and accountants by delivering advanced tax strategies often overlooked in traditional retirement planning — helping retirees reduce lifetime taxes and preserve wealth across generations.
For more information, contact Retirement Tax Consultants at 469-342-8889.
David B. Hyden, CFF®, NSSA®, IRMAACP®
Retirement Tax Consultants, LLC
+1 469-342-8889
email us here
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