Hi, Vince Oldre, certified financial planner and here to talk to you about whether or not you should make a Roth conversion, and some things you need to consider before you do that. So if you have a retirement account and you want to make that Roth conversion, you need to make sure to stick around and figure out whether or not you should do that. What I have here are some questions you need to think about before you make that Roth conversion. So for example, what tax bracket are you going to be in when you make that Roth conversion? Should you do a Roth conversion while you’re still working, or should you do that conversion when you’re no longer working, when your taxes might be less? Where will your taxes be in the future? Meaning, will taxes go higher in the future, will they go lower? Again, where will it be when you’re working or not working? Will a conversion make your social security tax bill?

So if you’re in or near retirement and you’re trying to figure out what’s the best strategy for social security, some of that strategy might come around about how to do Roth conversions with your overall assets and when to plan on taking social security around your taxes, not around what’s the best time to take social security as far as how are you going to get the most from social security. So depending on how many assets you have, it might be a little bit harder to determine as far as, will a conversion make more of your social security taxable? So that’s something you need to think about.

Then, what’s your time horizon? Are you going to be able to do this over a very long timeframe? Do we have a very short timeframe? When are you turning [inaudible 00:01:32] because we have required minimum distributions? Those are all things you need to think about before you do a Roth conversion. Then last but not least, who are you doing this for? So if you are planning on leaving most of your money to a charity, it doesn’t make sense to move money from an IRA to a Roth IRA because the charity would get that money tax-free anyway.

So these are just a few things that you should consider before making a Roth conversion. If you have any questions around whether or not you should do a Roth conversion, feel free to reach out to us. Or if you have any other questions around retirement planning, send us an email or give us a call and we’ll be more than happy to answer your question in the next video. Until then, and thank you for watching this video, and hope to see you next time.

Should You Create A Roth Conversion? | Assured Retirement Group
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