I Tested Converting a $2M IRA to Roth. Here's What I Found

Comments · 110

• LA

  @lawr5764 · 4 weeks ago

  I wish you would do a SINGLE PERSON version of these analysis videos.

  53

• TA

  @tallyho275 · 3 weeks ago

  My life was a lot simpler before I ever heard of Roth conversions.

  17

• WA

  @wadeworkman7142 · 3 weeks ago

  Who converts 100% all at once??? Fill up the tax brackets over 10 years.

  26

• MI

  @MissySkeeter · 2 weeks ago (edited)

  Excellent! &nbsp;<a href="https://www.youtube.com/watch?v=nyX96CbRYck&amp;t=1150">19:10</a>The death of a spouse also is a substantial factor in life time taxes. &nbsp;For example, a 30 year scenario where a spouse dies at age 75 versus a spouse dies at at 85.

  1

• TH

  @TheWealth_Rewired · 3 weeks ago

  The “single person” point is actually a really good one. A Roth conversion strategy can look completely different depending on filing status, other income, and how many years you have to spread the conversion across. The $2M example really shows why the one-time approach can be so expensive.

  2

• RA

  @raykrv6a · 2 weeks ago

  I didn&apos;t convert enough to the Roth prior to RMD land. &nbsp;Then I converted in 2024 too much without regard to IRMAA. So this year I&apos;m paying an extra 202.90 for Part B and 37.50 for Part D. &nbsp;Staying under the 109k threshold while collecting SS, pension, and doing a meaningful conversion amount is tough, but that&apos;s what I&apos;m doing now. &nbsp;I will most likely be taking RMD&apos;s for a long time along with converting yearly. &nbsp;The funny part is my IRA is growing faster than my RMD plus conversion amount. &nbsp; I may not live long enough to clear out the IRA. Tough problem to have. I will review the new IRMAA brackets when they come out in October and if reasonable, do another conversion to get close to the top of the first bracket which is currently 137k. Sometimes you gotta pay to play. &nbsp; Medicare with a supplement is less then half the cost of going out to the market and buying health insurance.

  4

• PA

  @patwilson2546 · 3 weeks ago

  Doing it all in one shot immediately puts them into highest bracket. &nbsp;That&apos;s common sense. &nbsp;I am in my 60s with a standard 401K. &nbsp;I am watching videos like this because I am interested inn converting some to a Roth. &nbsp;I am smart enough to know not to get out of your current tax bracket.

  2

• KS

  @KS-wv7zn · 1 day ago (edited)

  There are state and local taxes … there are RMDs… there is irmma

• RC

  @rc4211 · 3 weeks ago (edited)

  Roth conversions are an excellent tool, but why anyone would convert $2 million at one time is beyond me. &nbsp;That said, there are many reasons beyond simply tax rates that need to be evaluated when considering a Roth conversion plan.

  19

• SA

  @SarahStuff-p5u · 3 weeks ago

  You retire before 64, early enough to roll it over in Chunks, I retired at 50 and will have mine all rolled over by 62, then capture some capital gains before 64.....very complex but there are ways to do things differently that saves hundreds of thousands in your life.

  5

• MI

  @MikeSTGL · 3 weeks ago

  Like you said at beginning, &quot; it is all based on 1 thing , taxes now vs later &quot; . Also no tax rate is permanent &nbsp;!!

  1

• RE

  @RedRuffinsore · 6 days ago

  I understand it much better....and still have no idea what to do.