Retirement accounts can also be used to support charitable causes. Beginning at age 70 ½, anyone with a traditional IRA can donate up to $100,000 per year to a qualified charity. This is known as a qualified charitable distribution (QCD). A married couple can contribute $100,000 per year, per person. The benefit of doing this is that any QCD is made tax-free.

What is tax efficiency? Generally speaking, tax efficiency is being able to pay the lowest amount in taxes. Since most people think of taxes as an annual engagement, it might make sense to think tax efficiency means simply paying as little as possible year over year.

A Roth conversion strategy might take years to actually implement, particularly for people who have large IRAs they’re trying to convert. During this time, a lot of changes might happen which might impact the way you implement your strategy—or at least things might happen which might cause you to ask yourself, “Am I still doing the right thing here?”

With the SECURE Act changes, many people who stand to inherit IRAs are now subject to a 10-year rule, which requires a full withdrawal of the IRA balance over a 10-year period. Without proper tax planning, this can cause a significant tax impact to the beneficiary, particularly high-earning adult children who inherit large IRA balances.

While the coronavirus-related legislation allows for more leniency, there’s nothing new for most people. Even the rule that allows people to be taxed on their withdrawals over multiple years, or to put money back—that was designed specifically to provide flexibility to get through today’s tough times, nothing more.

Don’t believe the marketing hype about rolling your 401(k) into an IRA just because you left your job. You don’t have to. Your next move should make sense in your overall financial plan and your Roth conversion strategy.