What's the Right Roth Conversion Amount to Avoid a Tax Nightmare in the Future?

Ready For Retirement

James Conole, CFP®

Investment Planning, Bonds, Education, Stocks, Cash, Business, Dividend Investing, Retirement Planning, Retirement, Investing, Tax Planning

5 • 706 Ratings

🗓️ 23 January 2024

⏱️ 27 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Sammy, a 51-year-old retiree, is seeking advice on how much she should convert from her traditional IRA to a Roth IRA each year to avoid jumping tax brackets and minimize the taxation of her social security benefits. James analyzes Sammy's current financial situation and offers guidance on approaching the tax planning aspect of her retirement strategy. Learn: How to determine how much to convert from an IRA to a Roth IRA Why forward-looking tax planning is essential The potentia...

Transcript

Click on a timestamp to play from that location

0:00.0	In today's episode ready for retirement, we're going to be breaking down Sammy's financial
0:03.6	plan. Sammy's done well. She's 51 years old and she's already been retired for four years
0:08.2	after saving up a good amount of money in her portfolio. Her challenge, though, is determining
0:12.7	how much she should convert from her IRA to her Roth IRA so that she doesn't run into any major
0:17.7	tax bills in the future. I'll walk you through how to think about using Sammy's situation as an example so you can identify areas in your own plan where you
0:24.6	might be able to save significant amount of money on taxes. And it's all coming up next on today's
0:28.7	episode of Ready for Retirement. This is another episode of Ready for Retirement. I'm your host,
0:35.8	James Cannell, and I'm here to teach you how to get the most of the
0:38.1	life with your money.
0:39.5	And now, on to the episode.
0:43.1	So let's jump into Sammy's question.
0:45.3	And Sammy just right with the bad apologies, I'm saying her.
0:48.1	So I'm not sure if female or male, but I'm going to be saying her and my apologies
0:52.0	if I'm incorrect in that.
0:53.7	Sammy says,
0:54.3	Hi, James.
0:54.8	I'm a subscriber to your YouTube channel and I find your videos extremely helpful.
0:58.3	I am single and I will be 51 years old in early 2024 and I've been retired since I was 47.
1:03.6	I am trying to figure out how much I should be converting each year through a Roth conversion
1:07.2	to avoid jumping tax brackets and possibly avoid getting my social security heavily taxed.
1:12.0	For this, I would like to assume a 10% rate of return on investments since I have an
1:16.1	aggressive investment portfolio and that the tax rates remain the same in the future.
	...

Transcript will be available on the free plan in -429 days. Upgrade to see the full transcript now.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from James Conole, CFP®, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of James Conole, CFP® and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.