This is a big one especially if you have a child with a disability. All right?

Did you know that you can make a Roth 401(k) conversion after you’re dead? So, let’s say that you’re a big shot. You’re in a very high tax bracket, or even you’re a medium shot and you’re still in a higher tax bracket certainly than your beneficiary — whether it’s a special needs child or whether it isn’t. We do this. People love doing this.

You have to jump through a few hoops, but we sometimes can take the IRA and roll it into a 401(k). We don’t do the Roth 401(k) conversion until after your death. Then the child does the conversion after you’re gone, but they do it at their rate.

And for a regular (that is, a child without a disability), we’re talking 10 years of tax-free growth. But for a child with a disability — and we can get tax-free distributions over their life expectancy at their tax rate — man, that alone might be worth hundreds of thousands of dollars. So, we hardly ever see anybody do this.

I’ve been doing it since 1998, and I’m not the only guy. Bob Keebler, to be fair, has been doing it too. In fact, one time, we both came out with practically the same article at the same time, but just because we both figured, “Oh, this is a cool thing to do!”