Roth conversions: controlling your future

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Living Your Wealth, Today and Tomorrow

Infinity Financial Strategies

8 episodes

3 days ago

Hosted by Kelly Ennis, Founder and President of Infinity Financial Strategies, Living Your Wealth Today and Tomorrow is a podcast that explores enjoying the wealth you’ve built while planning for the future. If you’ve built your nest egg, always waiting for tomorrow to consider travel, free time, or a career pivot, this is for you! We’ll talk about strategies to minimize taxes, investing for the future, choosing a path to your work-optional life, and pursuing your future goals while enjoying your wealth today.

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Roth conversions: controlling your future

Living Your Wealth, Today and Tomorrow

31 minutes 21 seconds

3 weeks ago

Roth conversions: controlling your future

In this episode of Living Your Wealth: Today and Tomorrow, Kelly Ennis, founder and president of Infinity Financial Strategies, explores the powerful tax strategy of Roth conversions. Kelly breaks down the differences between traditional and Roth retirement accounts, outlines when and how conversions work, and highlights advanced approaches like backdoor and mega backdoor strategies. She shares how timing, income levels, and changing tax laws can all influence your financial outcomes. Tune in to learn how Roth conversions can help you reduce future tax burdens, increase flexibility, and build a more secure legacy.

Key Points From This Episode:

[00:00:18] Introduction to Roth conversions and why they matter.
[00:00:46] Tax treatment of Roth vs. traditional retirement accounts.
[00:02:02] The problem with large pre-tax balances and future tax risk.
[00:04:07] Income limits for direct Roth contributions vs. conversions.
[00:06:25] Having both Roth IRA and Roth 401k for future flexibility.
[00:08:34] When IRA contributions become non-deductible.
[00:10:20] Importance of proper tax reporting for backdoor Roths.
[00:13:34] Why Roth conversions provide long-term tax control.
[00:16:19] Required minimum distributions (RMDs) and their tax impact.
[00:17:43] Taking advantage of today’s historically low tax rates.
[00:19:01] Importance of timing and the five-year rules.
[00:21:33] Tax rate history and today's lower tax environment.
[00:23:06] Opportunity presented by current low tax rates.
[00:24:26] Strategies for spreading conversions and managing IRMA.
[00:25:57] Roth conversions as a tool for legacy planning.
[00:28:43] Coordinating with your advisor and accountant.
[00:30:29] Final message and encouragement to explore Roth options.

Links:

Learn more at: https://infinityfinancialstrategies.net 

Follow Kelly on LinkedIn: https://www.linkedin.com/in/kelly-ennis-cfp 

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