Jill on Money with Jill Schlesinger Roth Conversions Leading to Early Retirement?
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Jan 13, 2026 Is now the right time for Roth conversions if you're close to retirement? Discover insights on whether to convert assets or defer until your income decreases. Learn about managing taxes effectively, along with the importance of liquidity. Also, find out the best ways to seek out fee-only financial planners for personalized advice. Plus, hear practical tips on making small annual conversions and considerations for estate planning and survivor benefits. Tune in for valuable financial strategies!
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Caller With Large Accounts Considering Conversion
- A 49-year-old single caller with $2.7M taxable, $1.25M traditional 401(k), and plans to retire at 55 asked about converting to Roth.
- Jill and Mark advised shifting future contributions to Roth but suggested waiting on full conversion until nearer retirement.
Shift Future Contributions To Roth
- If you have liquidity, consider converting future 401(k) contributions to Roth instead of pre-tax contributions.
- Convert large existing pre-tax balances cautiously and possibly wait until an early-retirement low-income window near age 55.
Don't Add To Tax-Deferred If Already Heavy
- Stop adding more tax-deferred money if you already have substantial pre-tax retirement assets.
- Favor Roth contributions when you don't need additional current tax deferral.