Roth Conversion Myths and Tax Pitfalls: Insights from a CPA with Glenn Block

The 'What's Next?' Retirement Podcast

Summary
In this podcast episode, Craig Wear and Glenn Block discuss the intricacies of Roth IRA conversions from a CPA's perspective. They explore the misconceptions surrounding tax brackets, the importance of strategic planning, and the role of CPAs in guiding clients through the conversion process. The conversation highlights common pitfalls, tax strategies, and the benefits of charitable contributions in relation to Roth conversions. The episode emphasizes the need for professional guidance to navigate the complexities of tax planning and retirement strategies effectively.
Takeaways
Roth conversions can be beneficial even in higher tax brackets.
Many CPAs discourage conversions due to misconceptions about tax implications.
Using external funds to pay taxes on conversions preserves Roth IRA growth.
Charitable contributions can be strategically timed to offset conversion taxes.
Professional guidance is essential for effective tax planning and conversions.
Understanding capital gains tax is crucial when selling investments for conversions.
Donor advised funds can provide significant tax benefits when making charitable contributions.
The timing of tax payments can impact overall financial strategy.
Roth conversions can lead to substantial tax savings over a lifetime.
It's important to have a CPA who understands the nuances of Roth conversions.
Chapters
00:00 Introduction to Roth Conversions
02:11 Understanding CPA Perspectives on Roth Conversions
04:01 The Timing and Tax Implications of Roth Conversions
04:53 Understanding Roth IRA Conversions
15:25 Strategic Tax Planning for Roth Conversions
22:04 The Importance of Professional Guidance
29:50 Navigating Capital Gains and Roth Conversions
43:05 Leveraging Charitable Contributions for Tax Benefits