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Protect & GrowAuthor: Tim Stearns
Trust, Respect, Results Language: en Genres: Business, Education, How To, Investing Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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Roth Conversion Mechanics: Mastering the Timing, Taxes, and Traps
Episode 1003
Saturday, 3 October, 2026
In this episode of Protect and Grow Chicagoland Retirement, host Peter sits down with Tim Stearns, CFP®, to dive deep into the mechanics of Roth conversions. While the concept of a Roth conversion is simple, the execution requires careful planning around timing, income tax brackets, age milestones, and funding sources for tax liabilities.Tim breaks down how to "nibble on the tax bill" through multi-year strategic planning rather than converting large balances all at once. They cover key windows of opportunity—including in-service distributions at age 59 1/2 and highlight potential pitfalls to avoid, such as IRMAA Medicare surcharges, Social Security tax implications, and the early withdrawal penalty rule.Key Takeaways:Good, Better, Best Tax Funding: Why using external cash is the ideal way to pay conversion taxes while keeping the full principle invested.The 59 1/2 to Age 62 Sweet Spot: How to capitalize on tax bracket planning before the two-year Medicare IRMAA look-back period begins at age 63. RMD Mechanics: How Required Minimum Distributions interact with Roth conversions and why RMDs must be satisfied first. Long-Term Benefits: How Roth accounts protect against future tax rate hikes, alleviate the "widow's penalty," and create a tax-free legacy for beneficiaries. For more updates on when Tim Stearns uploads a new video follow these social medias Facebook - https://www.facebook.com/TJStearnsInc/?ref=aymt_homepage_panel If you prefer to listen to the videos they will be posted in audio form on this page. https://protectandgrow.libsyn.com/site?_ga=2.261998026.658482677.1678457675-23497610.1666730944 DISLCAIMER: Securities offered through Crown Capital Securities, L.P. Member FINRA / SIPC OSJ
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