In this episode, we are joined by Sunpointe’s Ben Tuscai to take a deep dive into Roth conversions. We discuss the criteria that investors can use to determine when the make sense and why they aren’t used in the real world as often as you might think. We also discuss back door Roth conversions, mega back door Roth conversions, conversions inside employer plans and a lot more.
- 02:18 – The major criteria that determines if Roth conversions are appropriate
- 06:45 – Roth conversions are rarer than you think
- 08:22 – The importance of phase transitions
- 12:06 – Other considerations beyond taxes in Roth conversions
- 14:44 – Roth conversion scenarios
- 16:07 – The five-year rule
- 17:03 – The timing of Roth conversions
- 20:15 – The mix between Roth IRA, traditional IRA and taxable money
- 23:07 – Roth 401ks and conversions in employer plans
- 29:32 – The back door Roth conversion
- 34:09 – The mega back door Roth conversion
- 37:23 – Potential future tax legislation
- 38:00 – Roth recharacterizations
- 40:35 – The importance of asset location
- 44:21 – The history of the Roth IRA
