Today I’m talking about Roth conversions.
But instead of talking about why they’re so great…
…I’m sharing 5 reasons why you might NOT do them.
To help, Steven Jarvis, CPA joins me. Together, we share a handful of often-overlooked reasons that might make you pause.
If you’re ready to learn why you might pass on Roth conversions (today or in the future!), today’s episode is for you.
- A Roth conversion is the process of converting Traditional IRA dollars to Roth IRA dollars
- Proactive Roth conversions can significantly reduce lifetime taxes for the right person
- Roth conversions are not a universal solution for everyone
How to Listen to Today’s Episode
Episode Links & Resources:
- Retired or Close to It? Need a Retirement + Tax Analysis?
- Steven Jarvis:
Five Reasons NOT to Do a Roth Conversion:
- Shadow Taxes
- They are Permanent
- Consider IRA 60-Day Rollover as an alternative
- You don’t have the cash to pay the tax bill
- Consider updating your Form W-4 to increase withholdings
- You don’t want to do it
- “There’s the textbook answer, and then there’s YOUR answer. As long as YOUR answer doesn’t put your retirement in jeopardy, I support it.” ~Taylor Schulte
- Giving your money away at end of life is most important
- Qualified Charitable Distributions (QCDs) and Donor-Advised Funds are likely better tax strategies