Should I Consider a Roth Conversion?

A Roth conversion may be worth considering if you expect to be in the same or a higher

tax bracket in the future, want to reduce future required minimum distributions (RMDs),

or are looking to create tax-free income later in retirement. By converting a portion of a

traditional IRA or pre-tax retirement account to a Roth IRA, you pay income taxes today

in exchange for tax-free growth and withdrawals in the future.

Roth conversions are often most effective during lower-income years—such as early

retirement before Social Security and RMDs begin, after a job change, or in years with

unusually low taxable income. They can also be a valuable estate-planning tool, as

Roth IRAs are not subject to RMDs during your lifetime and can provide tax-free

benefits to heirs.

However, conversions are not appropriate for everyone. Paying the tax upfront can

increase current-year tax liability, potentially trigger higher Medicare premiums (IRMAA),

or affect other tax-based benefits. The decision should be evaluated in the context of

your cash flow, tax brackets, long-term retirement income plan, and overall financial

picture.

Because the cost of getting this wrong can be significant, Roth conversions

should never be done without a strong plan addressing the multiple issues that

you may face. The window to act is often limited, and once missed, it cannot be

recovered. Before making assumptions or taking action, schedule a personalized

Roth conversion analysis to quantify the tax savings, identify the optimal

conversion amount, and determine the right timing. A personalized tax analysis

can identify whether a conversion strategy adds value—or creates unnecessary

tax exposure. Roth conversions can permanently reduce lifetime taxes—but only

if executed correctly.

Traditional IRA vs. Roth IRA as part of your estate:

A traditional IRA can be left to a spouse subject only to a RMD Required Minimum

Distribution. However, when your heirs inherit the IRA, the account must be liquidated

within a 10-year period and RMD’s may need to be taken. The taxes can be significant

and potentially add additional taxes to other earnings. An inherited ROTH IRA has no

RMD’s, does not need to be liquidated until the end of the 10 years following death. The

fund continues to grow and accumulate tax free.

A single coordinated strategy today can add tens—or even hundreds—of

thousands of dollars, to your after-tax retirement income.

Schedule a consultation to review your current tax bracket, future income

projections, and determine whether a Roth conversion strategy fits your

retirement plan.