When Do Roth Conversions STOP Making Sense? - 535

Your Money, Your Wealth

Realestate, Income, Investing, Personalfinance, 401k, Rothconversion, Retirement, Education, Taxes, Socialsecurity, Personalfinances, Finance, Retirementplanning, Investments, Stocks, Business, Roth, Fiduciary, Ira

2.3 • 681 Ratings

🗓️ 24 June 2025

⏱️ 27 minutes

🔗️ Recording | iTunes | RSS

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Summary

Ryan in Texas is in the 32% tax bracket. Where should he save for retirement so he’ll be in a lower bracket? Should Weronika in Texas pay the taxes now to convert to Roth for lifetime tax-free growth in the future, even though she’s in the 37% tax bracket? And Jerry in Phoenix wonders if there is a point where Joe would come to the conclusion that Roth conversions no longer make sense? Stay tuned for the 7 reasons to consider NOT converting to Roth, today on Your Money, Your Wealth podcast number 535 with Joe Anderson, CFP® and Big Al Clopine, CPA. First up, a word of Roth conversion thanks from Al in Florida.

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Timestamps:

00:00 - Intro: This Week on the YMYW Podcast

00:44 - Thanks for Suggesting a Roth Conversion During the Market Drop (comment from Al, FL)

03:38 - In the 32% Tax Bracket. Where Should I Save for Retirement to Be in a Lower Bracket? (Ryan, TX)

07:57 - In the 37% Bracket: Backdoor Roth or Non-Roth Investments for Retirement Savings? (Weronika, TX)

12:25 - Watch The Last 5 Years Before Retirement Will Decide Your Lifestyle - Here's How on YMYW TV. Calculate your free Financial Blueprint

13:23 - Is There a Point Where Roth Conversions No Longer Make Sense? (Jerry, Phoenix, AZ)

25:26 - YMYW Podcast Outro

Transcript

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0:00.0	Ryan in Texas is in the 32% tax bracket.
0:03.0	Where should he save for retirement so he'll be in a lower bracket?
0:07.0	Should Veronica in Texas pay the taxes now to convert to Roth for lifetime tax-free growth in the future,
0:13.0	even though she is in the 37% tax bracket?
0:16.0	And Jerry and Phoenix wonders if there is any point at which Joe would come to the conclusion that Roth conversions no longer make sense.
0:23.7	That's today on Your Money, Your Wealth podcast number 535.
0:27.2	First up, a word of Roth conversion thanks from Allen, Florida.
0:30.7	I'm executive producer Andy Last and Everloven Adelaide with the hosts of Your Money, Your Wealth,
0:35.8	Joe Anderson's CFP, still in Minnesota as you watch or listen,
0:39.2	and currently not thinking about YMIW at all in Greece, Big Al-Cloafin CPA.
0:44.2	All right, let's go to Big Al.
0:46.0	You're your brother in Florida.
0:47.7	Apparently, yeah.
0:48.8	Just want to thank you guys.
0:49.9	During the Market plunge, either Big Al or Joe recommended to use market drop to do Roth conversions.
0:55.6	I did. And with the market recovery, I have recaptured 30% of the taxes I paid.
1:03.0	How about that? Boom. I would not have thought of doing that. Thanks again.
1:08.9	Yeah, that's a good strategy that I think a lot of people don't
1:12.2	necessarily think about. So it's simply this. So the market declines. And instead of freaking out,
1:18.8	look at the opportunities that you have. One opportunity that you have is consider the money
1:23.7	in your IRA 401k. Can you convert it to a Roth IRA? Because whatever you convert,
1:29.3	whatever it's worth when you convert it, that's what you pay taxes on. And if the market's down,
	...

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