Smart Roth Moves

In the latest Financial Strategies, Andrew and Daniel Agemy unpack the “silent partner” inside traditional IRAs and 401(k)s: the IRS. They explain how decades of tax-deferred saving can become a future tax time bomb, especially once RMDs begin and withdrawals stack onto other retirement income. The episode walks through why Roth conversions can help “fire” that silent partner—by paying tax on purpose, in the right years, and in the right amounts—so future retirement income can be more predictable and tax-efficient. They emphasize that Roth conversions are not for everyone and must be customized. The key is managing the overlap of three different “brackets”: (1) income tax brackets, (2) IRMAA (Medicare premium surcharges) with a two-year lookback, and (3) Social Security taxation thresholds. They also discuss strategic timing during the “retirement income valley” (after work ends but before RMDs begin), the importance of “bumping the bracket” without spilling into the next one, and why paying conversion taxes from outside the IRA (when possible) can materially improve the math. The takeaway: Roth planning isn’t about beating the market—it’s about beating the tax code with intentional, coordinated strategy. 🔔 Like, subscribe, and turn on notifications for more retirement education.