Roth Conversions, Real-World Case Studies, and Next Steps


Description

In this final session, we’re pulling everything together. I’ll review the major lessons from this series, walk you through how to do a Roth conversion, and share a powerful case study of a real investor who turned a seller-financed portfolio into a tax-free wealth machine. You’ll also learn how to handle fees, keep your account simple, and work with your professional team to avoid mistakes. My goal is to make sure you leave here with clarity, confidence, and a step-by-step plan to grow your self-directed IRA into a lifetime of tax-free income.


Key Takeaways

  • Focus your best deals inside tax-free accounts: Roth IRAs, HSAs, Educational Savings Accounts, and Roth 401(k)s.

  • Pay tax on the seed, not the harvest — Roth accounts give you tax-free income for life.

  • Step-by-step process: open account, fund account, find an investment, complete paperwork, transfer money, and track assets online.

  • Financial planners often resist self-directed IRAs — not because they’re risky, but because they lose commissions.

  • Self-direction itself is not risky; the risk comes from the investment you choose.

  • You can legally convert part or all of a traditional IRA/401(k) into a Roth IRA using a Roth Conversion Directive form (with CPA guidance).

  • Always have your accountant complete IRS Form 8606 for Roth contributions and conversions.

  • Example case study: Ralph acquired 23 properties via seller financing and used Roth IRAs and land trusts to structure the deal tax-free.

  • Overfunding mistakes can be corrected — penalties are usually just 6% on the excess, and you can adjust year-to-year.

  • Work with your professionals (attorney, CPA, custodian) and keep deals simple by splitting assets and liabilities wisely.

  • Avoid SEC issues: talk to potential lenders one-on-one, not in group pitches.


Action Steps / Exercises

  1. Review All Six Sessions: Write down your top 3 insights from each video — this locks in your learning.

  2. Run a Roth Conversion Scenario: Ask your CPA how much of your traditional IRA or 401(k) you can convert this year without jumping tax brackets.

  3. Read the Book Keep It by Joel Lubby before making Roth conversion decisions.

  4. Open or Fund Your Account: If you haven’t yet, complete the forms at camaplan.com and get money transferred into your Roth IRA.

  5. Create Your Professional Team: List your custodian, CPA, attorney, and trusted advisors. Keep their contact info handy.

  6. Case Study Exercise: Sketch out how you would structure a “Ralph-style” deal — seller financing, trusts, and IRA investments.