We hear it all the time. Roth this and Roth that. "Convert now before it’s too late" and many more. We think Roth conversions can be powerful in the right situations. But what most people don't talk about is that sometimes they may actually do more harm than good to your lifetime tax bill.

In this episode of Common Curiosities Retirement, Michael CFP®, EA discusses the conversation and explores the other side of the Roth conversion story. When he thinks they may not make sense to use.

Topics include:

💭 Why the upfront tax bill can matter more than the long term potential math

💭 Cash flow pressure and how Roth taxes actually often get paid

💭 When charitable giving can make pre tax dollars more powerful

💭 Why state taxes and future moves often get ignored

💭 Shadow taxes like IRMAA, ACA subsidies, capital gains, and hidden surcharges

💭 Life expectancy and planning for kids versus just yourself

💭 The irreversible nature of Roth conversions and timing decisions

Roth conversions could help you keep more money long term. They can also quietly trigger taxes and costs you did not see coming.

As always, stay curious.

𝐖𝐡𝐲 𝐰𝐞'𝐫𝐞 𝐡𝐞𝐫𝐞?

We’re here to make retirement planning feel less intimidating by helping people think through their strategies and plans through clear relatable financial topics!

💬 Questions or Want to Connect?

🌐 𝐖𝐞𝐛𝐬𝐢𝐭𝐞: www.custerfinancialadvisors.com

📧 𝐄𝐦𝐚𝐢𝐥: custerfinancialadvisors@lpl.com

00:00 Not Choosing Roth?

01:39 Why People Do Like Roth Assets

03:46 What is a Roth Conversion?

05:01 Everyone Has a Business Partner!

05:42 How Much Does the Government Allow?

06:36 Willing to Pay Tax Now?

08:07 Could You Get a Penalty?

10:07 Gifting Plans Affect Your Choice?

11:30 State Tax Effects!

12:55 How Many People Are You Tax Strategizing For?

15:06 Forgetting Your Shadow Taxes

16:24 65+ Extra Tax Deduction

17:09 The Irreversibility of Conversions

18:34 The Complexity of Roth Conversions

19:49 Youtube Disc. TN & Words.mp4

Disclosures:

Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.