What if you could convert your traditional retirement accounts to Roth IRAs, preserve your portfolio, and still leave a larger legacy—all while avoiding a big tax hit upfront?
That’s the question Barry Sacks, Ph.D., J.D., tackles in this advanced discussion. A Harvard-trained tax attorney and nationally recognized thought leader on reverse mortgage science, Dr. Sacks has co-authored groundbreaking research on how to use reverse mortgages to support long-term financial security.
In this session, Dr. Sacks joins Don Graves to explain five distinct Roth conversion strategies—each using a reverse mortgage as a tool to pay taxes, preserve account values, and maximize after-tax income.
What We Discuss:
1. How to convert without shrinking your Roth
Barry explains how using a reverse mortgage line of credit to cover the tax bill allows your full converted amount to enter the Roth IRA intact. That means more money compounding tax-free from day one.
2. Why reverse mortgage proceeds are tax-efficient
These funds are loan proceeds—not income—which means they don’t increase your taxable income, nor do they impact Social Security or IRMAA brackets.
3. How the Roth’s efficiency boosts income and legacy
Because Roth withdrawals are tax-free, you can withdraw less than you would from a traditional IRA and still net the same spendable income—leaving more in the account for heirs or future needs.
4. The interaction between interest and long-term value
Barry models how the interest that accrues on the reverse mortgage compares to the tax savings and Roth growth, helping you understand when the tradeoff is worth it—and when it isn’t.
5. Why this strategy may result in a greater total legacy
In certain scenarios, combining reverse mortgage funds for tax payments with a well-timed Roth conversion can actually leave more to heirs than doing nothing—especially when home values and Roth assets appreciate over time.
Why This Strategy Matters
Too many people skip Roth conversions because they don’t want to write a check to the IRS. But this strategy turns housing wealth into a smart, silent partner in your retirement plan—preserving capital, managing taxes, and creating planning flexibility.
For those who value:
Leaving a legacy
Managing Required Minimum Distributions
Optimizing tax brackets over time
Reducing long-term portfolio risk
What to Do When You Have a Client or a Case?
- Go to www.HousingWealthPro.com and request a Housing Wealth Illustration. Give Details in the “Notes” Section including the clients’ phone # if they would like a Housing Wealth Assessment. You can also
- Schedule a Time to Speak with Me: Click Here
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The content of this blog is for financial advisors and professionals only and is not intended for consumer use. Names, cases, and scenarios are fictionalized for illustrative purposes. The opinions expressed here are those of the author alone and do not reflect the views of any affiliated entities or individuals. Don Graves, NMLS #142667.
