When to Time Your Roth Conversions
From The Retirement Nerds.
Watch this video on YouTube ↗
When should you do a Roth conversion? Most people treat tax rates, age, and the market as three equal reasons to convert. They aren’t. In this video, Zacc Call of Capita Financial Network and I walk through the order that matters: your tax rate decides whether to convert, your age decides when the window is open, and the market only decides timing within that window. It’s a bonus, not a reason.
We cover:
How to estimate your future tax rate when nobody knows future tax law
Whether “fill up your tax bracket” is a good rule, and when it leads people wrong
Paying the conversion tax from the IRA vs. from savings
IRMAA, and why age 63 matters for your Medicare premiums
The 2025–2028 senior deduction and how conversions interact with it
What to do if you convert and the market then falls 20%
Life events that should trigger a conversion review: losing a spouse, moving states, a gap year, inheriting an IRA
Who shouldn’t convert at all
Roth conversions count for the calendar year they’re completed, so 2026 conversions must be finished by December 31. Many custodians set earlier processing cutoffs, so check with yours.
📊 Want help running your own conversion numbers?
Reach out at https://theretirementnerds.com/contact-us/
📰 Join our newsletter for monthly tips, book recommendations, and personal stories!
https://theretirementnerds.com/newsletter/
⏰ TIME CODES ⏰
0:00 Intro
0:45 The Four Whens
1:32 Estimating Taxes for Life
6:39 Important Ages
9:43 Prioritize SS or Roth?
15:18 Inheritance Implications
20:49 The Math vs The Emotion
22:58 The Market Influence
28:44 Conversion Deadlines
31:30 Where to Pay Taxes From
37:11 Understanding Breakeven
39:25 The Widow's Penalty
42:04 How Much To Convert
44:05 Other "Whens"
46:53 If You Remember One Thing
47:34 Where to Get Help
=============================
#medicare #theretirementnerds #socialsecurity #retirementnerds #finance #rothira #rothconversions
Disclosure: This podcast is intended for informational purposes only, and is not a substitute for personal advice from Capita. This is not a recommendation, offer, or solicitation to buy or sell any security. Past performance is not indicative of future results. There can be no assurance that investment objectives will be achieved.
Different types of investments involve varying degrees of risk, including the loss of money invested. Therefore it should not be assumed that future performance of any specific investment or investment strategy, including the investments or investment strategies recommended or proposed by Capita will be profitable. Further, Capita does not provide legal or tax advice. Please consult with your legal or tax professional for advice prior to implementing any strategies discussed during this podcast.
Certain information discussed during this podcast is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. Capita believes that such statements, information and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information, and opinions. Registration with the SEC does not imply a certain level of skill or training.
We cover:
How to estimate your future tax rate when nobody knows future tax law
Whether “fill up your tax bracket” is a good rule, and when it leads people wrong
Paying the conversion tax from the IRA vs. from savings
IRMAA, and why age 63 matters for your Medicare premiums
The 2025–2028 senior deduction and how conversions interact with it
What to do if you convert and the market then falls 20%
Life events that should trigger a conversion review: losing a spouse, moving states, a gap year, inheriting an IRA
Who shouldn’t convert at all
Roth conversions count for the calendar year they’re completed, so 2026 conversions must be finished by December 31. Many custodians set earlier processing cutoffs, so check with yours.
📊 Want help running your own conversion numbers?
Reach out at https://theretirementnerds.com/contact-us/
📰 Join our newsletter for monthly tips, book recommendations, and personal stories!
https://theretirementnerds.com/newsletter/
⏰ TIME CODES ⏰
0:00 Intro
0:45 The Four Whens
1:32 Estimating Taxes for Life
6:39 Important Ages
9:43 Prioritize SS or Roth?
15:18 Inheritance Implications
20:49 The Math vs The Emotion
22:58 The Market Influence
28:44 Conversion Deadlines
31:30 Where to Pay Taxes From
37:11 Understanding Breakeven
39:25 The Widow's Penalty
42:04 How Much To Convert
44:05 Other "Whens"
46:53 If You Remember One Thing
47:34 Where to Get Help
=============================
#medicare #theretirementnerds #socialsecurity #retirementnerds #finance #rothira #rothconversions
Disclosure: This podcast is intended for informational purposes only, and is not a substitute for personal advice from Capita. This is not a recommendation, offer, or solicitation to buy or sell any security. Past performance is not indicative of future results. There can be no assurance that investment objectives will be achieved.
Different types of investments involve varying degrees of risk, including the loss of money invested. Therefore it should not be assumed that future performance of any specific investment or investment strategy, including the investments or investment strategies recommended or proposed by Capita will be profitable. Further, Capita does not provide legal or tax advice. Please consult with your legal or tax professional for advice prior to implementing any strategies discussed during this podcast.
Certain information discussed during this podcast is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. Capita believes that such statements, information and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information, and opinions. Registration with the SEC does not imply a certain level of skill or training.
