Firm Introduces Multiple IRS-Compliant Approaches to Reduce, Recover, and Offset Roth Conversion Taxes
MCKINNEY, TX, UNITED STATES, January 30, 2026 /EINPresswire.com/ — Retirement Tax Consultants, LLC, a national firm specializing exclusively in retirement tax and income planning, today announced a major expansion of its Roth conversion tax-minimization platform. In addition to its established IRA-LLC valuation discount strategy —which can reduce Roth conversion taxes by a minimum of 35% – the firm now offers three additional IRS-compliant strategies designed to recover and offset Roth conversion taxes.
Together, these four distinct strategies allow qualifying retirees to significantly reduce the upfront tax cost of Roth conversions while preserving long-term tax-free growth and improving legacy outcomes.
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A MULTI-LAYERED APPROACH TO ROTH CONVERSION TAX PLANNING
The cornerstone of the firm’s approach remains its IRA-LLC valuation discount strategy, which applies IRS-recognized valuation discounts to limited liability company (LLC) interests held inside a self-directed IRA (SDIRA). By obtaining a certified third-party appraisal and applying accepted discounts — such as lack of control (DLOC) and lack of marketability (DLOM) — clients may legitimately reduce the fair market value (FMV) of assets converted to a Roth IRA.
This approach can lower taxable income associated with a Roth conversion by at least 35%, often producing substantial lifetime tax savings.
“While the IRA-LLC strategy itself is considered low risk when properly executed, we have an attorney on staff who is familiar with the structure. This significantly increases client confidence,” Hyden said. “The strategy has been used for more than 20 years, and no properly supported Roth conversion valuation discount has been successfully challenged by the IRS.”
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 our attorney is 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,” said David Hyden, President and Founder of Retirement Tax Consultants. “The Government Default Plan is to pay 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 strategies, many clients can reduce their total tax burden by 50% or more.”
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EXPANDED STRATEGIES: REDUCE, RECOVER AND OFFSET ROTH CONVERSION TAXES
In addition to valuation discounts, Retirement Tax Consultants now offers:
• A 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 with 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.”
“We serve as the bridge between the accountant and the financial advisor—focusing exclusively on retirement tax strategies that are often overlooked.”
— David Hyden, CFF®, NSSA®, IRMAACP®
ROTH CONVERSION ANALYSIS: HOW TO KNOW FOR SURE WHETHER TO CONVERT OR NOT
For those uncertain about whether a Roth conversion is appropriate, Retirement Tax Consultants offers a Roth Conversion Analysis that compares the Cost of Roth Conversion with the Lifetime Cost of Not Converting.
“Many retirees suspect they should convert but don’t know for sure,” Hyden explained. “What most don’t realize is that choosing not to convert often results in decades of avoidable taxes—through RMDs, Medicare surcharges, Social Security taxation, and heavily taxed inheritances.”
The analysis clearly illustrates which path produces the lowest lifetime tax burden.
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WHY TIMING MATTERS
Traditional IRAs expose retirees to several long-term risks, including:
1. Rising future tax rates
2. Required minimum distributions (RMDs)
3. Taxation of Social Security benefits
4. Medicare IRMAA surcharges
5. Ongoing fees on the IRS-owned portion of IRA balances
6. The Widow’s Penalty
7. 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 their post-conversion assets to grow tax-free for up to 15 months before taxes are due in April 2027.”
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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
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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.
David B. Hyden, CFF®, NSSA®, IRMAACP®
Retirement Tax Consultants, LLC
+1 469-342-8889
email us here
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