John Nunes Fortis Insurance Solutions

Yesterday we talked about why every Roth dollar needs a job.

Today, let’s talk about one of the most important jobs a Roth conversion may help with:

𝗜𝗻𝗰𝗼𝗺𝗲 𝗰𝗼𝗻𝘁𝗿𝗼𝗹.

In retirement, income may come from several places:

Social Security.
Pensions.
Traditional IRAs.
401(k)s.
Annuities.
Brokerage accounts.
Roth accounts.

But not all income is taxed the same way.

That is why planning matters.

A Roth conversion may help create more flexibility later by giving you another bucket to draw from when managing taxable income becomes important.

But the conversion itself can create taxable income today.

So the question is not just:

𝗦𝗵𝗼𝘂𝗹𝗱 𝗜 𝗰𝗼𝗻𝘃𝗲𝗿𝘁?

The better question is:

𝗪𝗶𝗹𝗹 𝘁𝗵𝗶𝘀 𝗵𝗲𝗹𝗽 𝗺𝗲 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 𝗺𝘆 𝗿𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁 𝗶𝗻𝗰𝗼𝗺𝗲 𝗹𝗮𝘁𝗲𝗿?

Because retirement is not just about having money.

It is about knowing which dollars to use, when to use them, and how those withdrawals may affect taxes, Medicare, Social Security, RMDs, and long-term income.

𝗧𝗵𝗲 𝗴𝗼𝗮𝗹 𝗶𝘀 𝗻𝗼𝘁 𝗷𝘂𝘀𝘁 𝘁𝗼 𝗰𝗼𝗻𝘃𝗲𝗿𝘁.

The goal is to convert with purpose.

Before you convert, understand the plan.

Message me 𝗖𝗢𝗡𝗩𝗘𝗥𝗧 for the free Fortis booklet:

𝗕𝗲𝗳𝗼𝗿𝗲 𝗬𝗼𝘂 𝗖𝗼𝗻𝘃𝗲𝗿𝘁

Or request it here:
https://www.fortisinsurancesolutions.com/before-you-convert

A Roth conversion does not have to be an all-or-nothing decision.

One of the biggest mistakes people can make is thinking they need to convert an entire IRA, 401(k), 403(b), 457, or retirement account all at once.

In many situations, that may create more problems than it solves.

Why?

Because a large conversion may increase taxable income in the year it is done.

That could affect:

𝗬𝗼𝘂𝗿 𝘁𝗮𝘅 𝗯𝗿𝗮𝗰𝗸𝗲𝘁
𝗬𝗼𝘂𝗿 𝗠𝗲𝗱𝗶𝗰𝗮𝗿𝗲 𝗽𝗿𝗲𝗺𝗶𝘂𝗺𝘀
𝗬𝗼𝘂𝗿 𝗦𝗼𝗰𝗶𝗮𝗹 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝘁𝗮𝘅𝗮𝘁𝗶𝗼𝗻
𝗬𝗼𝘂𝗿 𝗿𝗲𝘁𝗶𝗿𝗲𝗺𝗲𝗻𝘁 𝗶𝗻𝗰𝗼𝗺𝗲 𝗽𝗹𝗮𝗻
𝗬𝗼𝘂𝗿 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 𝗮𝗻𝗱 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆

That is why many Roth conversion strategies are reviewed over multiple years.

Instead of asking:

𝗦𝗵𝗼𝘂𝗹𝗱 𝗜 𝗰𝗼𝗻𝘃𝗲𝗿𝘁 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴?

The better question may be:

𝗛𝗼𝘄 𝗺𝘂𝗰𝗵 𝗰𝗮𝗻 𝗜 𝗰𝗼𝗻𝘃𝗲𝗿𝘁 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗰𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗮𝗻 𝘂𝗻𝗻𝗲𝗰𝗲𝘀𝘀𝗮𝗿𝘆 𝘁𝗮𝘅 𝗽𝗿𝗼𝗯𝗹𝗲𝗺?

A partial conversion strategy may allow someone to move retirement dollars gradually while managing tax exposure year by year.

But the right amount depends on the full picture.

Your income.

Your tax bracket.

Your retirement timeline.

Your Medicare situation.

Your future RMD exposure.

Your liquidity.

Your need for reliable income.

A Roth conversion can be powerful.

But the amount matters.

The timing matters.

The plan matters.

𝗕𝗲𝗳𝗼𝗿𝗲 𝘆𝗼𝘂 𝗰𝗼𝗻𝘃𝗲𝗿𝘁, 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗽𝗹𝗮𝗻.

Message me 𝗖𝗢𝗡𝗩𝗘𝗥𝗧 for the free Fortis booklet:

𝗕𝗲𝗳𝗼𝗿𝗲 𝗬𝗼𝘂 𝗖𝗼𝗻𝘃𝗲𝗿𝘁

Or request it here:
https://www.fortisinsurancesolutions.com/before-you-convert

One of the biggest reasons people look at Roth conversions is because of future Required Minimum Distributions.

Most people spend years building money inside a traditional IRA, 401(k), 403(b), 457, or similar retirement account.

But here is the part many people do not think about early enough:

At some point, the IRS may require you to start taking money out.

Those withdrawals are called Required Minimum Distributions, or RMDs.

And once those RMDs begin, they may increase your taxable income whether you need the money or not.

That can create a ripple effect.

It may affect your tax bracket.

It may affect how much of your Social Security is taxed.

It may affect Medicare-related costs.

It may affect how much retirement income you actually get to keep.

That is why Roth conversions are often discussed before RMDs begin.

A partial Roth conversion may help move some money from a tax-deferred account into a Roth IRA, potentially reducing future RMD exposure.

But this does not mean everyone should rush to convert.

Because the conversion itself may create taxable income in the year it is done.

So the real question is not:

𝗦𝗵𝗼𝘂𝗹𝗱 𝗜 𝗰𝗼𝗻𝘃𝗲𝗿𝘁 𝘁𝗼 𝗮𝘃𝗼𝗶𝗱 𝗥𝗠𝗗𝘀?

The better question is:

𝗖𝗮𝗻 𝗜 𝗰𝗼𝗻𝘃𝗲𝗿𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰𝗮𝗹𝗹𝘆 𝗯𝗲𝗳𝗼𝗿𝗲 𝗥𝗠𝗗𝘀 𝗯𝗲𝗴𝗶𝗻?

That is where planning matters.

The goal is not to create a tax problem today while trying to solve a tax problem tomorrow.

The goal is to coordinate taxes, income, liquidity, Medicare, Social Security, and long-term retirement goals.

𝗔 𝗥𝗼𝘁𝗵 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝗺𝗮𝘆 𝗵𝗲𝗹𝗽 𝗿𝗲𝗱𝘂𝗰𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗥𝗠𝗗 𝗲𝘅𝗽𝗼𝘀𝘂𝗿𝗲.

But only if it fits the plan.

𝗕𝗲𝗳𝗼𝗿𝗲 𝘆𝗼𝘂 𝗰𝗼𝗻𝘃𝗲𝗿𝘁, 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗽𝗹𝗮𝗻.

Message me 𝗖𝗢𝗡𝗩𝗘𝗥𝗧 for the free Fortis booklet:

𝗕𝗲𝗳𝗼𝗿𝗲 𝗬𝗼𝘂 𝗖𝗼𝗻𝘃𝗲𝗿𝘁

Or request it here:
https://www.fortisinsurancesolutions.com/before-you-convert