The information I am providing is my opinion and not necessarily that of my firm or this platform.  I am only providing general educational information and not any customized investment recommendations. You should consult with your Financial Advisor, Tax Advisor or Attorney on your specific situation. Nothing shall be construed as Financial, Tax or legal advice or recommendations.

Roth IRA conversions offer a strategic financial maneuver for individuals aiming to optimize their retirement savings by transferring funds from traditional retirement accounts to a Roth IRA. This process allows for tax-free growth and withdrawals during retirement, though it requires paying taxes upfront. Financial experts Kris Flammang and Collin Habig both stress the significance of having a well-thought-out plan before embarking on Roth conversions. Drawing from their extensive experience in financial planning, they advocate for partial conversions over time to manage tax liabilities effectively and to work within current tax brackets, thereby minimizing potential impacts on Medicare premiums and future tax bills. They highlight the necessity of collaborating with financial planners to tailor strategies to individual circumstances, particularly for those with a longer time horizon before retirement or those in lower current tax brackets, ensuring that Roth conversions contribute to a tax-free legacy for heirs.

Here’s what to expect this episode:

• Strategically converting portions over several years can lock in current tax rates and avoid required minimum distributions in retirement.

• Working with financial planners to fine-tune the conversion process ensures individuals do not exceed tax thresholds and account for state income taxes.

• Roth conversions are beneficial for leaving a tax-free legacy to heirs, making them an excellent tool for long-term planning.

Connect with Collin Habig

https://www.linkedin.com/in/collinhabig/

Connect with Kris Flammang

https://www.linkedin.com/in/kristopher-flammang-lpfadv/

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