Ep 27: Understanding the Pros & Cons of Roth Conversions
Audio is streamed directly from the publisher (mcdn.podbean.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Chances are you’ve heard a lot more people talking about Roth conversions over the past couple of years. That’s because tax rates are low and many individuals are choosing to pay now rather than waiting when they might be much higher. Is this a strategy that might work for you? Let’s try to cover everything you need to know before converting.
Show notes and additional resources: https://philstaxhacks.com/podcast/ep-27-understanding-the-pros-cons-of-roth-conversions/
Today's rundown:
1:49 – In the News: A study found CEOs and CFOs are pessimistic about the economy while consumers remain optimistic in 2020.
3:54 – The Coronavirus could be the trigger for the economy to drop.
6:02 – We’re talking about Roth conversions today because that’s been a hot topic with the current state of taxes.
7:08 – Let’s begin with what is a Roth conversion.
9:07 – Is this especially helpful if you’re a high-income earner?
10:02 – The assumption is you’ll be in a lower tax bracket in retirement but that’s not always the case.
10:56 – The common mistakes that Phil sees clients make with conversions.
12:37 – With the SECURE Act eliminating the Strech IRA, will this strategy become more popular?
14:55 – Is there a type of person that might not benefit from a Roth conversion?
16:15 – Are there ages that Roths make sense or is that too generalized?
17:50 – Cash Connection email question: I just looked at my Social Security breakdown and I’m blown away by how much more I’ll get at 70. I’m inclined to wait until then to start my Social Security even though I’m planning to retire at 67. What do you think?
19:50 – Getting to Know Phil: Are you native Michigander? Where did you grow up?