When Roth Conversions Make Sense—and When They Don’t (Plus IRMAA Traps to Avoid)

In this episode of Money Matters, Scott and Pat answer listener questions and explain when Roth conversions make sense, when they don’t, and how taxes, IRMAA Medicare surcharges, and market volatility can change retirement outcomes. They discuss strategic gifting to adult children, helping fund Roth IRAs, 401(k)s, and HSAs without killing motivation, and walk through a real call from a retired teacher debating whether converting his accounts is worth it. Along the way, Scott and Pat break down the math behind Roth conversions, explain how pensions and Social Security affect the results, and why paying conversion taxes from retirement accounts can wipe out the benefits. If you’re retired or nearing retirement and considering Roth conversions, this episode offers clear, practical guidance to avoid costly mistakes. Join Money Matters:  Get your most pressing financial questions answered by Allworth's co-founders Scott Hanson and Pat McClain. Call 833-99-WORTH. Or ask a question by clicking here.  You can also be on the air by emailing Scott and Pat at [email protected]. Download and rate our podcast here.