Roth Conversions in Retirement: When They Make Sense, Episode 369

For investors nearing or already in retirement, Roth conversion planning can affect lifetime taxes, required withdrawals, Medicare costs, Social Security taxation, and the after-tax value of an inheritance. The important question is not whether Roth accounts are useful. It is whether paying taxes today could improve your long-term financial outcome.

Derek Gabrielsen, CRPC® — Senior Wealth Advisor, and Tony Zabiegala, CRPC® — Senior Wealth Advisor, discuss why Roth accounts are receiving renewed attention. They examine the potential planning window between retirement and required minimum distributions, Roth 401(k) options, catch-up contributions, 529-to-Roth rollovers, inherited account rules, and the tradeoff between taking a tax deduction today and creating tax-free assets for the future.

This conversation offers educational perspective on coordinating Roth decisions with current income, marginal tax rates, retirement withdrawals, Medicare planning, and legacy goals. Roth conversions should be evaluated as part of a coordinated strategy because the amount and timing can affect several other areas of a retirement plan.

Chapters

00:00 Why Roth IRAs Matter Right Now
00:23 Today’s Roth Conversion Opportunity
01:14 What Is Driving the Roth Shift?
02:56 Roth IRAs Aren’t Just for Younger Investors
03:52 The Early-Retirement Conversion Window
04:27 How Recent Tax Changes Affect Planning
06:20 Deductions and Roth Catch-Up Rules
07:27 RMDs and the Case for Converting
08:15 Employer Matches and Roth Accounts
09:01 Roth or Traditional for High Earners?
10:10 Roth 401(k) Rules and Rollovers
11:01 Catch-Up Contributions for Ages 60–63
12:24 Moving Unused 529 Funds Into a Roth
14:04 Using a Roth IRA as a Legacy Tool
16:06 Could Roth Tax Treatment Change?
17:10 Building a Coordinated Conversion Plan
18:16 Start With Your Marginal Tax Rate
18:40 When Roth Conversions May Work Best