Welcome to Stay Walthy Podcast. I'm your host, Taylor Schulte, and today I'm tackling

part two of our two-part series on Roth conversions. Specifically, I'm sharing how to determine

if a Roth conversion makes sense, a Roth conversion case study, and common mistakes and pitfalls to watch out for.

So if you're ready to master Roth conversions and take control of your tax bill,

you're going to love today's episode.

For all the links and resources mentioned,

just head over to you staywealthy.com forward slash 148.

Okay, let's quickly recap the basics of a Roth conversion before we get further into the

weeds here. A Roth conversion is the process of transferring money from a pre-tax retirement

account like a traditional IRA into an after-tax Roth IRA account. The amount that's being transferred or

converted is taxed in the year that you make the conversion. However, that money that you convert

is permitted to live inside of your Roth IRA for as long as you want it to. So what's so great

about that money living inside of a Roth IRA? Why do we

love Roth IRAs so much? Well, three reasons. One, assuming you invest the money inside your

Roth IRA, your investments, your money grows tax-free. In other words, you don't pay taxes on

dividends, interest, or capital gains. And in turn, that means that you'll have more investment growth over long periods of time.

Number two is you avoid those pesky RMDs, those required minimum distributions that

often come at an inopportune time.

And that's because money in a Roth IRA is not required to be withdrawn like a

traditional IRA. You can leave your investments growing in there forever. And that actually leads us

nicely to benefit number three, which is Roth IRAs can be inherited by your heirs. And they offer a

more tax-friendly way to inherit retirement dollars. Unlike traditional IRAs that are

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