Episode 403: The Five Biggest Roth Conversion Traps

In this episode, David McKnight walks you through the five biggest Roth conversion traps, and how to avoid them. He is a big believer in Roth conversions.  Because of the apocalyptic fiscal trajectory of the U.S., taxes in the future are likely to be dramatically higher than they are today. Hence, every dollar you reposition from tax-deferred to tax-free at these historically low tax rates may be one of the smartest financial decisions you ever make. However, while many people understand Roth conversions in theory, they still get them wrong in practice – David has seen some very costly mistakes over the years. The first big Roth conversion trap is waiting too long.  True: nobody wakes up excited to pay a tax 10-20 years before the IRS absolutely requires it of them… …but we're living in the middle of "the tax sale of a lifetime", which is likely to end in or around 2035 and will see the Federal Government forced to raise taxes. The second Roth conversion mistake has to do with not maxi...