In this episode of The Ascent, Alec Walker from Crestmont Private Wealth explains everything you need to know about Roth conversions. He covers what a Roth conversion is, when and why it makes sense, key rules and deadlines, tax implications, and how to determine if a Roth conversion is right for you. Alec also discusses the impact on Medicare premiums, estate planning, and strategies for optimizing your conversions. If you’re considering a Roth conversion or want to understand the benefits and potential pitfalls, this episode is packed with practical advice and expert insights.
00:00 – Introduction: Alec Walker and the topic of Roth conversions
00:14 – What is a Roth conversion?
00:56 – Roth conversion deadlines and why timing matters
01:47 – Why do Roth conversions in the fall?
02:07 – How much should you convert? Tax bracket considerations
02:49 – When does a Roth conversion make sense?
03:19 – Roth conversions and retirement years
03:59 – Roth conversions for large required minimum distributions (RMDs)
04:49 – The “gap years” and tax planning
05:14 – Importance of after-tax investment accounts
05:22 – Estate planning: Secure Act and inherited IRAs
05:49 – Hedging against future tax rate increases
06:14 – Reducing lifetime taxes with Roth conversions
06:39 – Five main reasons for Roth conversions
07:04 – Key rules and “gotchas” (deadlines, no takebacks, five-year clock)
07:51 – Five-year rule explained
08:24 – Tax brackets and Medicare premium considerations
08:45 – How Medicare premiums are calculated
09:04 – Impact on Affordable Care Act and insurance premiums
09:49 – Estimated taxes and making tax payments
10:19 – Withholding taxes vs. paying with outside funds
10:47 – Working with CPAs and tax professionals
11:12 – How to determine if a Roth conversion is right for you
11:30 – Analyzing your tax return and projecting income
11:50 – Annual vs. one-time Roth conversions
12:13 – The power of partial, annual conversions
12:36 – Long-term impact of annual conversions
13:01 – How to get in touch for a Roth conversion analysis
13:26 – Outro and contact
Original Air Date: September 20, 2025 at 8:30am as heard on Boerne Radio 103.9FM
Contact: www.crestmontpw.com
Alec Walker in Houston: 831-280-5288
Sam McGee in Boerne: 830-368-2898 information
See omnystudio.com/listener for privacy information.
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