Earn & Invest 674. Are We Roth Crazy? w/ Sean Mullaney
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Oct 20, 2025 In this engaging discussion, Sean Mullaney, a CPA and financial planner, takes a deep dive into tax planning misconceptions and the implications of Roth conversions. He argues that many retirees face lower taxes than expected, challenging the hype around Roth transitions. Sean also shares strategies for maximizing tax efficiency, emphasizes the benefits of backdoor Roths for high earners, and explains how to use deductions effectively. With insights on delaying Social Security and smart decumulation rules, he sheds light on creating a tax-savvy retirement plan.
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Roth Conversions Are Not Always Necessary
- Roth conversions are often oversold as a universal cure for retirement tax risk.
- Optimizing conversions should focus on known trade-offs and real math, not fear-based absolutes.
Use Backdoor Roth When Deduction Is Unavailable
- Do the backdoor Roth IRA if you can't deduct a traditional IRA and have no other traditional IRAs.
- It outperforms a taxable account long-term by avoiding capital gains and dividend leakage.
Be Selective With Roth Conversions
- Avoid characterizing Roth conversions as a 'need' for most people; they are sometimes beneficial but rarely required.
- Consider doing tailored taxable Roth conversions during low-income early-retirement years to capture low or 0% federal rates.
