Ep 25: Understanding the Basics of Roth Conversions

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.

 

Get the full show notes and additional resources here: https://www.baschrock-fg.com/podcast/ep-25-understanding-the-basics-of-roth-conversions/ 

 

Today's rundown: 

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.