I'm 68 And Retired With $200,000 In My 401(k) Should I Convert To A Roth IRA

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Would a Roth Conversion improve my tax efficiency? What happens if I run out of income before I run out of life? Will my spouse be ok? In this study, we'll take a look at being 68 and retired with $200,000 in your 401(k). Should you convert to a Roth IRA?
0:15 Introduction
1:13 Disclaimer
1:47 Case Study
2:00 Plan for Everything
2:33 Current Situation
3:40 Social Security Taxes
3:23 Roth Conversions
7:14 Social Security Tax Example
9:24 Tax Brackets
11:49 401(k) vs Roth IRA
17:32 Starting Distribution Tax
18:31 How Much to Convert?
20:00 Conclusion
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#incomeplanning #retirementplanning #retirementincome #retirewith200k #retirementat68 #retiredandsingle
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Blue Ridge Wealth Planners does not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.
Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Actual results will fluctuate with market conditions and will vary over time.
Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.
Blue Ridge Wealth Planners is an investment advisory firm, and not an accounting firm. Viewers are encouraged to consult with a tax professional to assist them with their specific tax situation. This video is for informational purposes only and should not be considered as tailored financial or tax advice. Viewers should consult with a financial services professional to assist them with their investment and financial planning questions.
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[@russelljoplin2728]

Hi, Thanks so much for posting these videos. They are very good at addressing the issues involved in making these important decisions. Two minor points you may want to address. First, the "Roth Conversion" slide at 6:56 should say "principal" instead of "principle", I only mention it because you use this same slide on all of these videos. Second, your audio is hard to understand with the excessive echo in your room. I usually watch your videos with the sound off because of the audio quality. Don't mean to be "that guy" but if I was in your position, I'd want this feedback. Thanks and keep up the great work!

[@blueridgewealth]

Russell, thanks for the feedback! I will get that corrected on the slides moving forward and we have gotten similar feedback on the audio so in the videos coming out soon we have a lapel microphone used to hopefully improved the audio quality! Thanks and keep watching!

[@everettcalhoun8197]

I watched your video and cannot believe you could take a simple retirement tax planning strategies and make it more convoluted and unnecessarily complex. Stay in your lane, by that I mean if you are in the 12% tax bracket convert what you can up until you bump into the next bracket. You also need a better understanding of provisional income as it relates to taxable SS benefits. Good luck.

[@blueridgewealth]

This advice ignores the likelihood that most Americans will have higher taxes in the future. If you want to stay in the 12% bracket more power to you but don’t be surprised if you owe more taxes later

[@everettcalhoun8197]

@@blueridgewealthWe shall see. I don't know what taxes will be and neither do you. My point is that don't go into the 37% tax bracket because your taxes may go up a few percentage points.

[@rogerstuart2592]

In my case, following your logic, not only will I never reduce my IRA to a point where I no longer have to worry about higher taxes/IRMAA, but my IRA will continue to outgrow my conversions.

[@rap4294]

I believe your calculations are incorrect for the taxable portion of social security income. With the given values of $26400 of SS benefits and $15600 of other taxable income, the amount of SS that is taxable is $1900. That means the total taxable income is $17,500, not $33,800.

[@blueridgewealth]

I believe you are correct. Most of the time we assume the worst and count 50% but in this case the numbers you used are more accurate. Thanks for the feedback!

[@WesHicks1]

A financial advisor that says monies instead of money? Seems sharp otherwise :), I’ll give him a pass. Lol

[@blueridgewealth]

Thanks for watching ripcord, we all have our quirks and for some reason I’m a monies guy haha