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10 Situations Where a Roth Conversion Doesn’t Make Sense
Manage episode 359209103 series 3437793
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Although Roth IRA conversions offer many financial benefits, they can also create financial woes if converted too soon or if tax filings aren’t managed properly.
In this episode, Alex shares 10 scenarios where it’ll pay to think twice before executing a Roth conversion.
In this episode, you’ll also hear:
How Roth conversions impact income benefits and taxes
Recognizing Roth conversions do not have a limited time window
Why age doesn’t matter for Roth conversions
Must-listen moments:
[00:03:28] Often, a mistake with Roth conversions or contributions is not noticed until many, many years later… and then it takes a whole lot of extra legwork to reverse and figure out what originally happened and where the mistake was.
[00:05:20] Spend a little time figuring out what your tax bracket looks like in this year and years to come, and come up with a multi-year plan, or better yet, delegate it out to one of your team of professionals.
[00:10:24] If you don't already have one, make sure on your calendar every year there is a recurring event to evaluate Roth IRA conversions for yourself and your family.
For more detail on financial topics curated just for freelancers, visit www.freelancefinancefix.com
You’re also invited to connect with me on LinkedIn at https://www.linkedin.com/in/alexmlynch/
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