The Setup:

Have you heard about Roth conversions but wondered how they work and whether they’d benefit your situation? To understand them, you first need to know about a Roth and what its features are. We’ll do that today as well as lay out all the other basics that will give you a firm grasp on Roth conversions.

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The Combination and Key Points: 

Retirement planning looks different for everyone and understanding what strategies you have at your disposal will help you structure a plan that works for your goals.

One of the more popular strategies being used right now is a Roth conversion, but how much do you know about it? In order to decide whether it works for your plan, you first need to understand the basics.

On this episode of Unlocking Your Financial Future, Ben Schrock will take us through everything that’s important to know and give us a complete understanding of how they work. We’ll begin with an explanation of Roth IRAs and the benefits they provide before taking you through the process of how a Roth conversion works, the tax considerations you’ll need to make, and why this strategy has become more prevalent in recent years.

You’ve also probably heard a lot about the SECURE Act. That’s one of the reasons we’re talking about this topic. Many of our clients are considering a Roth conversion as part of a way to adjust to the changes included in that new legislation.

So let’s run through it all and make sure you have a firm grasp of Roth conversions before we move into the strategy behind utilizing them in your retirement plan, which we’ll discuss on the next episode.

Before we get into that conversation today, Ben will give his thoughts on a recent survey that found differing opinions on the future of the economy. Should you be pessimistic or optimistic?

Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!

1:10 – Ben is staying busy at the office with it being tax season.

2:17 – In the News: A survey found CEOs and CFOs are pessimistic about the economy while consumers are optimistic. Who’s correct?

4:35 – Let’s move into the conversation on Roth conversions.  

5:01 – Ben explains what a Roth IRA is.   

6:00 – Ben explains the Roth conversion and how it works.  

7:11 – Many people aren’t familiar with a Roth and how it can benefit you.

7:55 – Why have Roth conversions become a popular strategy in recent years?

9:01 – The SECURE Act also plays a part in the growth of Roth conversions.

9:49 – If a client wants to do a Roth conversion, what does that process look like?

11:17 – When you make the conversion, can you take the money out of your existing money or do you have to pay taxes after the fact?

12:50 – Here are the common mistakes people are making with Roth conversions.

14:13 – Check to see if your company offers a Roth option within their retirement accounts.


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