The Roth Conversion Sweet Spot

Roth conversions are often a useful tax savings strategy for retirees, but the hardest part is deciding WHEN to actually do them.

In this episode of Retirement Answers, Jacob walks you through what he calls the "Roth Conversion Sweet Spot".

The "Sweet Spot" consists of a few things:
- Low Income
- Large Tax-Deferred Accounts
- Retired
- Not taking Social Security
- Good cash savings
- Not RMD age yet

When all of these things are true, you are a prime candidate for Roth conversions. Even if only a few of these items apply to you, Roth conversions could still be beneficial for you.

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Thanks for listening!

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[ericb]

Nice job Jacob, look forward to your future video's

[jeffsanfrancisco]

I will be in that sweet spot in a year or two but find it hard to make sense doing conversions since I will then lose my affordable care act subsidy. It seems to me that I should wait until I am 65 and on Medicare and before claiming social security to do Roth conversions.

[rickteeden]

99% of the people doing a Roth conversion will not have cash on hand to pay their taxes and, like myself, will just pay the taxes using the money at the time of the Ira withdrawal. Besides, if I did have that much cash, I would be investing it. So, to me, it’s six of one and a half dozen of another.