Key Takeaways:

1. Pay Now, Save Later A Roth conversion means you pay taxes on the money now, but once it’s in the Roth account, it grows and can be taken out later with no taxes at all. That’s a big win for the future!
2. Pick the Right Time Doing a conversion when you’re making less money (so your taxes are lower) or when you’re giving money to charity (which gives you tax breaks) can make it way cheaper to convert.
3. Ask a CPA for Help A CPA (kind of like a tax coach) can help you figure out the best time to do the conversion so you don’t end up with a big tax surprise.
4. The Sooner, the Better Doing a Roth conversion earlier in your career gives the money more time to grow — kind of like planting a tree early so it gets big and strong over time.
5. Look at the Whole Picture Don’t just focus on the taxes. You’ve got to look at your full money situation — savings, income, giving, and future goals — to decide if a Roth conversion makes sense.

Chapters:

Timestamp Summary

0:00 Exploring Tax-Free Retirement with Roth IRAs

1:15 Strategic Roth IRA Conversions and Tax Implications

4:15 Strategies for Minimizing Tax Impact on IRA Conversions

5:52 Strategic Timing for IRA Withdrawals and Tax Efficiency

5:53 Planning Retirement and Advocacy in Financial Conversations

6:23 Coordinated Roth Conversions with CPA for Optimal Tax Strategy

7:08 Balancing Tax Pain with Long-Term Financial Gains

7:57 The Importance of Roth Conversions and Team Financial Planning

9:31 Consult Advisors Before Investment Decisions Due to Risks

Powered by ReiffMartin CPA and Stone Hill Wealth Management

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Phillip Washington, Jr. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.