How to Avoid the Costly Mistakes of Roth Conversions with Zacc Call

Comments · 237

• OT

  @Otis-the-III · 11 months ago

  Thank you!  My wife and I have been doing Roth conversions in chunks over the past few years, based on a plan we built with a CFP. The goal was to reduce future income taxes and avoid IRMAA surcharges on Medicare. We started out paying the taxes from cash, but now we’re using IRA withdrawals to cover them. Once we’re both taking RMDs, we likely won’t be doing much more converting, since those distributions will push up our taxable income. With ~$4M in retirement assets, a 500K home that’ll be paid off by January, and a 60K pension, we feel well-positioned. Having tax-free Roth funds gives us a flexible option if we ever need extra cash without increasing our tax bill.

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• BU

  @buckwildz · 2 years ago

  This has topped the best videos I have seen on roth conversions. Thank you so much for the details!

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• CL

  @clayton88390 · 2 years ago

  I'm only 23. But I love watching the guests that you have on your podcast. Thanks for all you do Erik!

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• BO

  @Bondbeer · 2 years ago

  Great video. Be careful on going from 12% to 22% bracket if the majority of your income is from qualified dividends and capital gains which will go from zero to 15% in addition to the ordinary income going to 22%.

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• TR

  @Truthtalks86 · 1 year ago

  It is hilarious that we have to worry about our taxes with such scrutiny while our lawmakers are inside Trading all day in Congress

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• ER

  @Eric-wc7lx · 1 year ago

  Costly mistakes - not considering widow tax trap risk in trad IRAs and (not) converting primarily to leave a better (worse) tax situation to kids/heirs

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• BO

  @Bonez1999 · 2 years ago

  This is great stuff!!  Thank you for what you do, this is truly valuable information for those who are willing to sit down and listen to it!

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• SH

  @Shoebutie · 2 years ago

  Would love to hear more about the $0 capital gains conversion

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• W.

  @W.Eric.Anderson · 1 year ago

  This really cleared up the issues moving to roth from company 401k ....is not straight forward, best to be at same brokerage house and usually cant be done till 59.5....things i did not know....thanks

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• EU

  @europana7 · 2 years ago (edited)

  If your employer offers an after tax 401a plan, then you can ask the plan administrator to do an in-service distribution (as frequently as you want) to transfer funds from the 401a to your own Roth IRA. You would only be subject to tax on any gains in the 401a that you transfer over, but now you will be able to invest in anything offered by your broker, rather than the limited selection of the 401a plan. This is one possible back door Roth strategy.

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• W.

  @W.Eric.Anderson · 1 year ago

  You guys are great....so much great info on how to actually accomplish a conversion.  Thanks

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• TH

  @TheKatell52 · 1 year ago

  My thoughts are have a balance of standard and ROTH IRAs. No reason to be all in for either. The year my husband died (Jan. 4th) i was not employed until Sept. I knew that would be a great time to convert some IRA funds to ROTH, since i could file as married that year. So i converted about $20k that year. Since i was pretty young my IRAs werent very big, so i got a heck of a tax break and a good start on retirement. Over the years ive had standard and ROTH 401k's and IRAs. Taking my first RMD in 2025 and watching the timing so i take it when stocks are high, so i cash in less stock for more future growth.

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