Ramp Up to Retirement
Do Roth Conversions Still Make Sense After Tax Law Changes?
Key Takeaways
- How Roth conversions can affect retirement taxes, Medicare premiums, and future financial decisions
- Why recent tax law changes changed the reasons many people consider Roth conversions
- How inherited retirement accounts can create tax concerns for the next generation
- Why spreading conversions across multiple years may help manage tax brackets
- How financial planning connects taxes, income, investments, and estate decisions
Show Notes
If you’re approaching retirement with a large traditional IRA, deciding whether to convert to a Roth account can affect your future taxes, Medicare costs, and what your heirs receive.
How do taxes, Medicare costs, retirement income, and estate planning all connect when making this decision? The right decision depends on your situation, not just what tax rates are doing.
In this episode, Dan Reese, CFP®, explains how recent tax law changes have shifted the reasons people may evaluate Roth conversions as part of their retirement planning. He shares how Roth conversions can affect retirement taxes, future required distributions, and the assets passed to heirs. Dan also explains how reviewing your current financial picture, evaluating different tax-bracket scenarios, and coordinating with financial and tax professionals can help clarify the potential trade-offs.
Resources
Carson Wealth Retirement Readiness Quiz
About the Podcast
You’re nearing your Ramp Up to Retirement, where work will be optional. How do you make the best decisions to set yourself up for success? Tune in to hear from Dan Reese CFP®, Founder, Senior Wealth Advisor at Avery Wealth about the decisions and subtle changes you can make to ensure your retirement is successful!
As you approach life’s next chapter, we’re here to guide you through the intricacies of financial planning. We’ll help you stay focused on what truly matters as you navigate your retirement journey, overcome financial challenges, and leave a lasting legacy.