John Nunes Fortis Insurance Solutions

Yesterday we talked about income control.

Today, let’s talk about timing.

A Roth conversion is not just about whether it may make sense.

It is also about 𝘄𝗵𝗲𝗻 it may make sense.

For some retirees, there may be a window of opportunity after they retire but before Required Minimum Distributions begin.

During that window, taxable income may be lower than it could be later.

That may create an opportunity to review partial Roth conversions.

But timing matters.

Convert too much, and you may create a tax problem today.

Wait too long, and future RMDs, Social Security taxation, and Medicare costs may limit your options later.

That is why the better question is not simply:

𝗦𝗵𝗼𝘂𝗹𝗱 𝗜 𝗰𝗼𝗻𝘃𝗲𝗿𝘁?

The better question is:

𝗜𝘀 𝘁𝗵𝗲𝗿𝗲 𝗮 𝘄𝗶𝗻𝗱𝗼𝘄 𝘄𝗵𝗲𝗿𝗲 𝗰𝗼𝗻𝘃𝗲𝗿𝘁𝗶𝗻𝗴 𝗺𝗮𝘆 𝗺𝗮𝗸𝗲 𝗺𝗼𝗿𝗲 𝘀𝗲𝗻𝘀𝗲?

A Roth conversion should be timed with your income plan, tax bracket, Medicare picture, RMD timeline, and long-term retirement goals.

Before you convert, understand the window.

Message me 𝗖𝗢𝗡𝗩𝗘𝗥𝗧 for the free Fortis booklet:

𝗕𝗲𝗳𝗼𝗿𝗲 𝗬𝗼𝘂 𝗖𝗼𝗻𝘃𝗲𝗿𝘁

Or request it here:
https://www.fortisinsurancesolutions.com/before-you-convert

A Roth conversion can affect more than your taxes.

It may also affect Medicare.

This is one of the hidden issues many retirees do not think about until it is too late.

When you convert money from a traditional IRA, 401(k), 403(b), 457, or similar tax-deferred account into a Roth IRA, the amount converted may be treated as taxable income in that year.

That increase in income may affect more than your tax bracket.

It may also affect Medicare Part B and Part D premiums through something called IRMAA.

IRMAA stands for Income-Related Monthly Adjustment Amount.

In plain English, it means higher-income Medicare beneficiaries may pay higher Medicare premiums.

So if a Roth conversion pushes your income above certain thresholds, you may get an unexpected Medicare premium increase later.

That does not mean Roth conversions should be avoided.

It means they need to be coordinated.

Before converting, you need to ask:

𝗪𝗶𝗹𝗹 𝘁𝗵𝗶𝘀 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗺𝘆 𝘁𝗮𝘅𝗮𝗯𝗹𝗲 𝗶𝗻𝗰𝗼𝗺𝗲?

𝗖𝗼𝘂𝗹𝗱 𝘁𝗵𝗶𝘀 𝗮𝗳𝗳𝗲𝗰𝘁 𝗠𝗲𝗱𝗶𝗰𝗮𝗿𝗲 𝗽𝗿𝗲𝗺𝗶𝘂𝗺𝘀?

𝗔𝗺 𝗜 𝗰𝗼𝗻𝘃𝗲𝗿𝘁𝗶𝗻𝗴 𝘁𝗼𝗼 𝗺𝘂𝗰𝗵 𝗶𝗻 𝗼𝗻𝗲 𝘆𝗲𝗮𝗿?

𝗪𝗼𝘂𝗹𝗱 𝗽𝗮𝗿𝘁𝗶𝗮𝗹 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻𝘀 𝗼𝘃𝗲𝗿 𝘁𝗶𝗺𝗲 𝗺𝗮𝗸𝗲 𝗺𝗼𝗿𝗲 𝘀𝗲𝗻𝘀𝗲?

This is why Roth conversion planning should not be handled in isolation.

Taxes, Medicare, Social Security, RMDs, income needs, and liquidity should all be reviewed together.

𝗔 𝗥𝗼𝘁𝗵 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝗺𝗮𝘆 𝗵𝗲𝗹𝗽 𝗹𝗮𝘁𝗲𝗿.

But if it is not planned carefully, it may create surprises today.

𝗕𝗲𝗳𝗼𝗿𝗲 𝘆𝗼𝘂 𝗰𝗼𝗻𝘃𝗲𝗿𝘁, 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗽𝗹𝗮𝗻.

Message me 𝗖𝗢𝗡𝗩𝗘𝗥𝗧 for the free Fortis booklet:

𝗕𝗲𝗳𝗼𝗿𝗲 𝗬𝗼𝘂 𝗖𝗼𝗻𝘃𝗲𝗿𝘁

Or request it here:
https://www.fortisinsurancesolutions.com/before-you-convert