Roth Conversions and Withdrawal Frameworks: Retirement Income Planning

Looking for an educational overview of today’s most commonly searched retirement planning topics? In this episode of the Retire Sooner Podcast, Wes Moss and Christa DiBiase provide context around retirement income planning, tax considerations, and widely referenced financial frameworks, helping listeners better understand how these concepts are typically discussed.

• Review how Roth IRA conversions are generally evaluated and why converting an entire retirement account balance in a single tax year can materially affect taxable income calculations.

• Explain how marginal tax brackets apply to large conversions and why simplified terms like “tax bomb” may not fully reflect how tax liability is determined.

• Highlight considerations associated with forgotten or inactive 401(k) accounts and why consolidation is often discussed from an organizational or administrative perspective.

• Examine how withdrawal flexibility prior to Social Security eligibility is commonly framed when discussing early-retirement income planning.

• Outline factors frequently reviewed when evaluating whether life insurance coverage remains appropriate as family and financial circumstances change.

• Clarify how Secure 2.0 legislation outlines limited 529 plan–to–Roth IRA rollovers, including applicable statutory rules, eligibility criteria, and contribution constraints.

• Compare the traditionally cited 4% withdrawal framework with alternative retirement income scenarios that include pensions or guaranteed fixed-rate income sources.

• Discuss how “dry powder” reserves are often described using bond ETFs or money market ladders within retirement planning conversations.

• Evaluate the role small- and mid-capitalization stocks may play alongside large-cap equities within diversified, long-term portfolio discussions.

• Reframe home value benchmarks in an inflationary environment while noting why mortgage status is often considered when assessing retirement readiness.

Listen and subscribe to the Retire Sooner Podcast for ongoing discussions that explore retirement planning concepts, market context, and long-term financial considerations.

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