There are taxable accounts, tax deferred accounts, and tax-free accounts, and finding the proper balance of your investments in each type of account.

That's called tax diversification.

Today on your money, your wealth, Joe and Big Al, will help you figure out if you are tax-diversified enough.

And they'll confirm once again how capital gains an ordinary income work. Plus,

should you contribute to your tax-deferred traditional 401k or IRA or to your tax-free Roth

IRA or Roth 401K? What are the withdrawal rules for a direct rollover from a Roth 401k to

Roth IRA? What can you do about excess contributions to your Roth account?

And just to mix things up, are municipal bonds a good idea for conservative investors?

I'm producer Andy Last, and here are the hosts of your money, your wealth, Joe Anderson,

CFP, and Big Al-Clofine CPA.

Let's go to Susan. She writes in hey joe all and Andy i'm writing from

the suburbs or maybe excerpts outside of atlanta georgia hotlanta so susan she drives a 2005 acra

mbx that's kind of sexy and have an eight-year-old lab hound mix named Rex. I have two questions. One is maybe more for Joe and maybe one is for Al. Number one, I've been converting traditional IRA funds to my Roth IRA over the last several years, all while staying in my 12% head of household tax bracket. Currently have about 45% of my rollover traditional IRA,

25% my Roth IRA,

30% in non-qualified brokerage accounts.

I recall one of your episodes talking about spreading investments

among taxable, tax deferred, and tax-free for flexibility.

Should I continue to convert the traditional IRA until I'm closer to 30, 35% in each type?

Or is another percentage desired?

I have about 19 years until my required minimum distributions.

Let's see.

We don't have a ton of time. Let's take a break, y'all, and then let's kind of dive into that. Let's see. We don't have a ton of time. Let me, let's take a break out and then let's

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