6 Reasons NOT to Convert to a Roth

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Information 6 Reasons NOT to Convert to a Roth

Title	:	6 Reasons NOT to Convert to a Roth
Lasting	:	11.47
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Does this video change your decision on whether to do a Roth conversion?
Comment from : @foundryfinancial

im trying to access your link but it says that my credentials are invalid Why?
Comment from : @marciachamma2814

7th reason is that the IRS will be abolished in a few years
Comment from : @ExtraGuac007

Thanks to internet we are now finding out about financial education I wish this was taught in high school (mandatory) everyone would be well off less burden on the country they are from
Comment from : @JS-jv6rg

What if the conversion amount of money from 401k to roth is less than 10k since its a new 401k Would it make more sense in this case?
Comment from : @JS-jv6rg

Cost a million dollars potentially for the conversion? Who are we talking about here billionaires? Converting or not converting should be a few thousands dollars consideration If you're worried about losing an entire million with it, you don't have problems, just do it
Comment from : @rogerbrennan72

Great info Thanks!
Comment from : @garysproul2812

I don’t really understand the benefit I guess Pay taxes now or pay later Either way you’re taxed We have no intention of withdrawing large sums at once so our tax rate shouldn’t be high Maybe it would make sense to convert small amounts at a time??
Comment from : @DarrellKerinGohman

As someone passionate about investments, I often contemplate the strategies and paths that enable top-tier investors to amass wealth in the millions While I possess a substantial initial capital, I am uncertain about the specific tactics or avenues that would facilitate achieving gains exceeding $400k, similar to those achieved by several others this season
Comment from : @RheaJohnmark

I would think paying tax with pre-tax dollars is better than paying tax with Post-tax dollars
Comment from : @fairfeatherfiend

It’s sounds too complicated however if someone has five years left to work would it be beneficial to stop contributing to a 401k and start contributing to Roth 401k instead?
Comment from : @Bluewaterboy

One thing about paying a huge tax bill upfront is dealing with the inflationary pressures A dollar today in general, stretches more than a dollar ten years later So paying huge amounts today really cuts deep Sure the tax may change in the future, but in general, for the lower brackets for the elderly, the pressure due to that is not likely to be greater
Comment from : @shankarh6915

Just take out only 16k per year out of your traditional IRA No taxes on that
Comment from : @brucegruetzmacher5891

What if trump abolishes the irs?
Comment from : @joeshmoe7899

Great content here Thanks
Comment from : @jaredbridge122

I am retiring next year, but the thought of it fills me with anxiety My heart goes out to those who have already retired and are now relying on Social Security during such uncertain times After dedicating so many years to work, it's devastating to see everything at risk due to unexpected events, like this recent fires that have ravaged entire communities It’s especially difficult for those who are retired, with no savings or loved ones to turn to I can’t imagine how hard it must be for them, and it’s a reminder of how quickly things can change!!
Comment from : @MegannsRiley

I dipped out when they started talking $500K I'm just concerned about my measly $8K I need any possible penny! Send help!!!
Comment from : @BrandiRobillard

How about converting it into a whole life insurance poilicy
Comment from : @diamondjim8247

If you convert today and are in the 22 or 24 tax bracket, you'll pay that flat rate on conversion amount If your plan is to draw down traditional withdrawls in retirement as your main income, you would almost certainly pay an effective tax rate of much less than that? Yet everyone says convert, convert, convert?
Comment from : @maxshiraz3447

Everyone has been talking about taxes being higher in the future but tax rates in the United States have done nothing but gone down over the last 50 years
Comment from : @WaybackRewind

I’ve been hearing a lot about Roth IRA conversions lately, but I’m confused about whether it’s the right move for me I’m 47, with a decent 401(k) and a modest traditional IRA With taxes likely going up in the future, should I start converting now, or am I too late?
Comment from : @Colbe-lx7fb

I recently adjusted my Roth IRA to 50 in SCHD, 25 in SCHX, and 25 in SCHG For my Roth 401k, I went with 70 in Vanguard's S&P 500 Index, 20 in the Vanguard Growth Index, and 10 in the Vanguard International Index My goal is to grow my $350k to over $1 million within the next three years
Comment from : @SlapI-j9o

Excellent video!
Comment from : @barrystover9860

Which 13 states?
Comment from : @stevenb1969

"Convert Now!"👍💚🙂❤✌
Comment from : @stephengolden6080

Won’t your money multiply more if you don’t pay taxes upfront At the end, it won’t matter
Comment from : @markandnicole1000

Roth conversion is personal and complicated, but the bottom line is whether you can actually save taxes in the end One man's meat is another one's poison
Comment from : @kcanyon9108

I started RothIRA(minor) for my daughter at age of 15 and transferred / converted Roth account to her as soon as she turned 18 but dividend amount dropped Strange
Comment from : @bruceyung70

You make it sound like there is no investment penalty to pay for a Roth conversion with existing non IRA funds Yes there is That money should be invested and making a return You consistently disregard the opportunity cost of the upfront taxes paid to fund the conversion Secondly if you already have additional investments putting one into midlevel tax brackets I don't see you convert to Roth strategy working at all
Comment from : @cjgetreal

Literally everyone's income will go down in retirement as you will no longer need to save for retirement Unless you are contemplating tax fraud
Comment from : @330DKNY

How is the conversion impacted if the majority of retirement income is pensions as opposed to typical 401 investment?
Comment from : @Jek-zs2or

Thank You We need the numbers over time & a better understanding of the ROI to pay taxes as an investment
Comment from : @DG-Choc

Didn't hear this covered can't a Roth conversion bump you into a higher tax bracket that year because you have to declare the gains on the IRA when you convert?
Comment from : @nonstar8182

it isn't a tax minimization strategy - it can be - but typically it is difficult to save on taxes over your lifetime by moving to Roth So many factors
Comment from : @bruceheimbigner9587

The government wants to go after traditional IRAs but know they can't touch the Roths There is nothing stopping you from having both though
Comment from : @peterolbrisch8970

My wife and I went traditinal IRA because I do not trust the govenment to keep their promise of not taking out tax when we draw money out of the Roth account, if we had gone that way We got the tax benefit when we were raising children and did not have a lot of extra money to do anything with
Comment from : @markchapmon8670

We don’t know about future and 401k with a government that nobody trust In 10-20 years we might pay double the tax rate
Comment from : @Anonymous-do8jg

I am not converting I need my cash hoard to trade with and don't want to reduce it through conversion
Comment from : @jimsmith8324

And in theory the government can just create a new rule saying Roths dont exist anymore all earnings are taxable 😂
Comment from : @donniethesportsguy893

Thanks for the video, very informativebrI'm planning on doing a Roth conversion in January 2025 and I like most Americans, don't have "extra" money to pay the taxes so I'll have to use cash in the IRA to pay for it
Comment from : @katanatac

Every video I watch confuses me more
Comment from : @thatguyinelnorte

Can l do a part of the 401k to Roth?
Comment from : @samueljacob8142

What will be the lowest tax bracket percentage 10, 15, 20 years from now? Higher or lower? If you don't know, maybe hedge by doing "some" conversion every year after retirement
Comment from : @robertabryan2212

Why not mention the 5 year rule? Let's say if you're older than 595, Rollover IRA to Roth conversion, still apply 5 year rule? Each conversion apply own each 5 year conversion rule? Please and thank
Comment from : @sunnyl5200

Let’s do a real middle class scenario for another example
Comment from : @ToddM452

My kids can pay the tax I’ll be dead Why should I pay my kids tax with my money now on money they will inherit Either way the tax gets paid They can pay it
Comment from : @tednottodd

2 other reasons not to convert 1)Estate exceeds estate tax limits Roth is taxable asset beyond $28 million Heirs do get a tax credit, but Roth is taxed 2) Congress will change rules Making a decision now about the tax vicissitudes of the Congress in the future is impossible As they age, the politicians also want to avoid RMDs Witness the increase age of RMDs to 73 and 75
Comment from : @auricgoldfinger8478

How to I access your Right Capital application?
Comment from : @jtuke1

Seventh reason to not do a conversion: To enjoy the money by cashing it and spending it or gifting it now
Comment from : @janethunt4037

Good video, I'm curious when I start taking required RMDs from my IRA, I think that's age 72, what is the RMD calc for that? Is it like 15 years? So divide my balance by 15? Just trying to get a rough idea I'm 10 years away from it
Comment from : @JoeS97756

I'm pretty late on Roth No fault of my own When Roth IRAs started they were only for child secondary college expenses, no taxes on gains WHEN did the rules change? After we all have giant 401Ks or IRAs, it doesn't make sense to convert for most of us
Comment from : @PatCurrie

There is no reason to trust the government will not increase your taxes in the future I will convert, because it is common sense for me, and my methods have placed me in a better situation than my coworkers
Comment from : @dan_m7774

Now I remember one reason I passed on Roth a while ago Heirs making less pay less tax than I would doing a conversion Thanks; I will tell the kids to kick it in gear while I spend the RMD
Comment from : @amigatommy7

All you financial planners are now suddenly concerned about saving estate taxes for our kids a guilt trip to get people to convert and pay their taxes for them years in advance meanwhile retirees continue to scrimp and never spend on themselves In reality your screwing retirees with this tactic They should make their own retirement comfortable and spend before they are too old
Comment from : @johnnybq2

What’s the guarantee that a Roth IRA will not become taxable in the future?
Comment from : @JR-mc1rn

60 years old and I didn't manage to save that much in my Roth so the plan is to only take minimal withdrawals that the Roth can support and do small Roth conversions each year 10k to 15k each year until 70 I'm relying on my traditional for the bulk of my expenses Wasn't planning to retire until 62 but, well new management had other ideas Will delay Social Security as long as I can I have never been as happy/scared in my life
Comment from : @pizza4me298

Did a rollover for a clienthave converted a small amount so as not to cross any tax threshold past few years We won't convert it all but he was in position to Plus, the 5 year rule on conversions wouldn't impact him
Comment from : @teamrecon2685

I wish they taught investing at school level There is so much advantage to doing this! brMy biggest regret is that I started so late
Comment from : @EbrahamAljalil

I get $4000 a month from Social Security My pension is $10,000 a month I have 2 million in my IRA and rent out 5 apartments brActually that's all BS I just felt like joining the rest of the liars and braggarts here
Comment from : @keysersoze503

Retired at 49 and now 62 Assuming a life expectancy of 73-75 brThere are far too many variables and even FAs can't be 100 sure as to the right decision or outcome Same reasoning why I took Social Security at 62 It just makes sense to get and used the money today, because they may not be a tomorrowbrbrMy net worth and annual income, pension, SS and dividends/capital gains makes for a great life I'm already in the 22 tax bracket with a marginal rate of 1955 Doing a conversion would not make sense for me at this point in life brbrHaving talked to a few CFAs and read up on "Tax Efficient Retirement", I've concluded there is NO escaping paying taxes for me brDoing all these financial dances to reduce the amount we pay in taxes simply means you're getting less money brbrAt this point I don't care what tax bracket I'm in or what my marginal rate is IF/when I want or need extra money I'm taking it out of the 401k and paying the taxes and doing whatever with it What's left is up to my heirs to deal with I'm not going to stress about taxes
Comment from : @RichardCabeza

Your assessment of the pros and cons of paying the hefty tax up front for a Roth conversion was rushed and confusing I understood such a conversion resulted in $850,996 greater portfolio value, right? Yes it's a huge scary tax pain all at once if you do a big conversion, but today's (2024) taxes are historically low and will only go up---especially if the democrat party gets power
Comment from : @utoootu

In my will the vast majority of my money will go to charity I'm only giving a small amount to my kids and grandkids so there's no reason for me to do a Roth
Comment from : @josephthomas2226

I'm gonna convert $20k/year or so to qualify for Obamacare in Texas since I retired before I qualify for social security and have not enough MAGI otherwise
Comment from : @junkequation

Retirement is more complicated than just normal life
Comment from : @lidarman2

Regarding reason # 2 no cash for conversion I do not have cash and will use T-IRA to pay for taxes for the first conversion and will use converted fund to pay for subsequent conversions Therefore, I think # 2 is irrelevant Please correct me if I’m wrong
Comment from : @toantruong7901

rmd?
Comment from : @TToilets

Seems to me the ROTH is a good option when you factor in a large sum of money and they want to leave alot of it for a legacy for kids/grandchildren When YOUR ADVISOR doesnt want to explore options like a ROTH they are either lazy or they do NOT have your best interests!!
Comment from : @gerard0l6569

Thanks for all your good advice and work……however! This system is sooooo messed up and confusing ON PURPOSE! We are forced and need financial advisors just to keep paying more and more for guidance when it should all be simplified for us seniors Read and educate yourself on these matters and consult with your tax preparer…NOT a CFP! This is a self-propagating system and you will spend soooooo much money just to feel comfy n warm! Educate yourself
Comment from : @mrbbnut

The problem is not paying conversion taxes from the pre-tax account which is making the conversion not worthwhile, it is the amount of savings Bump up the pre-tax to $2M and run the projectionbrbrThe other issue appears to be that they took SS at an early age This reduces the room to convert in a low tax bracket before age 70-ishbrbrRegarding the advantage of paying Roth conversion taxes from post-tax: The advantage is one of tax efficiency, since paying the taxes from post-tax means that the post tax withdrawal has been 'Roth'ed That saves potential DIV and CG taxes But guess what ? A $1M portfolio with post-tax funds is likely to encounter 0 Qual DIV and CG anyway brbrThe example given was not a good one because the portfolio was increased 50
Comment from : @ericgold3840

My thought on why NOT to do a Roth conversion is that you are guaranteeing that you'll pay the taxes to the IRS upfront and probably when you have a higher tax bracket and income pre-retirement Meanwhile, if you are careful and strategic, you could optimize your traditional IRA/401k withdrawals in retirement when you most likely have a lower tax bracket
Comment from : @thundersnow93

If ya got the cash Good to convert to Roth to avoid RMD and increase on Medicare
Comment from : @Joe-dc2qo

Thank you, made things add clarity to my long standing overthinking of this Roth Conversion confisions for a long time!
Comment from : @SriKalHasti

When the Roth IRA first started, I thought of it as a Fed money grab Get the money upfront brSeeing how the government wastes the tax dollars, I would rather delay taxes due upon withdrawals brI’ll Let the IRA/401-K grow tax deferred with taxes due down the roadbrTo younger workers just starting their IRAs, it maybe good to pay taxes upfront
Comment from : @steventogami898

Isn't it the case that the ACA uses MAGI to determine eligibility for subsidies and that Roth conversions don't affect MAGI?
Comment from : @this_epic_name

The first SECURE Act torpedoed my plans to provide for my kids Now I get to jump through all the new hoops to attempt to protect my kids from huge tax burdens in the future
Comment from : @wesmoffett9395

i am 675 yrs old By mistake, I converted $200,000 of my $560,000 Rollover IRA into Roth IRA, 2 weeks ago I make around $130,000 at my job and $42,000 from SS that I started this year how can I reverse this mistake? please help me out thanks
Comment from : @mikedolati6126