Don't Make These Roth Conversion Mistakes!

Does the phrase “tax-free” curl your toes? Then you’ll want to grab your mug and join the team for this episode focused on Roth conversions — and more importantly, the mistakes people often make when trying to convert retirement funds to a Roth account.

Your hosts Aaron, Nic, and Randy bring their signature blend of insight, humor, and clarity to help you avoid costly missteps and understand the strategic importance of Roth conversions done right.

💡 Quick Takeaways:

• Don’t overconvert — watch for Medicare and tax thresholds
• Market dips = Roth conversion opportunities
• Use non-IRA money to pay the taxes
• Coordinate between financial planners and CPAs
• Start small to activate the five-year clock

Chapters:

00:00 – Introduction: The appeal of tax-free growth and Roth conversions
00:18 – Meet the coaches: Aaron, Randy, and Nic discuss their passion for Roth strategies
00:43 – Two gateways to Roth: Contribution vs. Conversion (focus on conversion mistakes)
01:09 – Why mistakes happen: Overlooking rules and the importance of understanding them
02:07 – The importance of wise counsel: Consulting tax and financial professionals
03:11 – Mistake #1: Converting too much in one year (impact on Medicare premiums)
03:37 – Mistake #2: Not coordinating Roth conversions with Required Minimum Distributions (RMDs)
04:34 – Mistake #3: Attempting to convert RMDs to Roth (not allowed)
04:57 – Mistake #4: Forgetting about state income tax exposure
05:21 – Mistake #5: Not converting during a market downturn (opportunity for tax-free growth)
06:08 – Mistake #6: Believing you need wages to do a Roth conversion
07:52 – Mistake #7: Withholding taxes from the IRA during conversion (why it’s a problem)
08:25 – Mistake #8: Letting your CPA drive the plan without input from your financial professional
09:24 – Real-life example: The importance of communicating your goals to your CPA
10:07 – Generic rules vs. specific planning: Why context matters
10:15 – Mistake #9: Missing the Roth conversion deadline (must be done by year-end, not tax filing date)
11:02 – Mistake #10: Waiting until the last minute to convert (custodian processing delays)
11:32 – Bonus mistakes: Over-contributing, exceeding income limits, and missing low-tax-bracket opportunities
13:01 – The value of proactive tax planning: How missed opportunities can cost hundreds of thousands
15:21 – The importance of collaboration between financial planners and CPAs
16:30 – Encouragement: Don’t disqualify yourself from considering a Roth conversion
17:00 – Playground analogy: Forced taxation and planning for the future
17:26 – Technical note: The two five-year rules for Roth IRAs and Roth 401(k)s
18:30 – Final takeaways:
 • Don’t eyeball your conversion—calculate and leave margin
 • Consider all taxes (state, federal, Medicare)
 • Use outside funds to pay conversion taxes
 • Collaborate with all your advisors
19:35 – Outro: How to contact the coaches, share the podcast, and important disclaimers

📬 Questions?

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🛑 Disclaimer:

Your Retirement Coach is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.