This article discusses how investors can execute Roth IRA conversions with little or no tax liability by combining them with a charitable lead annuity trust (CLAT). A CLAT is an irrevocable trust that pays a guaranteed amount to a charity for a specified period. By creating and funding a CLAT in the same year as the Roth IRA conversion using non-retirement account assets, investors can use the resulting charitable deduction on their tax return to offset the tax on the conversion, potentially achieving a tax-free Roth IRA conversion. However, there are considerations and limitations, such as the 30% of adjusted gross income (AGI) rule and potential administrative complexities when creating multiple trusts.

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