Prioritize Roth Conversions Over Tax Gain Harvesting

In retirement planning, a conservative spending rate is essential to accommodate potential bad returns and longevity, often leading retirees to have significant assets remaining at death. This surplus can often pass to heirs tax-free if appreciated taxable assets are not sold during the retiree's lifetime. Instead of focusing on tax gain harvesting those assets—an approach that may yield limited taxable benefits—opting for Roth conversions frequently proves more advantageous, particularly for those with substantial tax-deferred accounts. These conversions exploit current low income thresholds, allowing for greater tax efficiency, making them a preferred strategy in many cases.