Roth Conversions Explained: How They Work and the Tax Cost

A Roth conversion means moving money from a traditional IRA into a Roth IRA. The catch is that the converted amount counts as taxable income in the year you do it. In this episode, Ryan explains how to stage conversions over multiple years to manage your tax bracket, and why someone might want to act now if they expect their tax rate to rise in the future.Ryan also runs a future-value comparison showing how starting a child's Roth IRA at 18 versus 32 makes a dramatic difference, which gives Aaron the chance to share news about his newborn son Arthur. This is education, not personal advice; work with a tax professional before executing any Roth conversion strategy.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!