Should You Convert Your 401k Into a Roth IRA Before Retirement

In this episode, Lucas and Luna break down the Roth IRA conversion strategy for pre-retirees with large traditional 401k balances. They explain the tax implications, the ideal timing to minimize tax brackets, and how this move can reduce future Required Minimum Distributions (RMDs). Using a concrete example of a 58-year-old with $800,000 in a 401k, they walk through the math of converting $50,000 per year at a 22% marginal rate vs. waiting until age 72 when RMDs could push them into higher brackets. The hosts also discuss the Medicare IRMAA surcharge trap and state tax considerations, and offer a practical rule of thumb: convert up to the top of your current bracket if you expect higher income in retirement. This episode covers a specific strategy often overlooked by those nearing retirement, providing actionable insights for listeners considering proactive Roth conversions. #RothIRA #401k #RetirementPlanning #RothConversion #TaxStrategy #RMDs #RequiredMinimumDistributions #TaxBracket #IRMAA #Medicare #PreRetirement #FinancialPlanning #Fidelity #Vanguard #WealthManagement #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo