Jill on Money with Jill Schlesinger In-Plan Roth Conversions
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Sep 2, 2025 Get ready for a deep dive into in-plan Roth conversions available to federal employees starting in 2026! Discover effective strategies to manage tax payments and navigate retirement planning tailored for a 45-year-old single employee. Learn how to retire early without Social Security and leverage government pensions. Explore investment strategies, insurance coverage, and smart savings options, like CD ladders, to maximize returns. Finally, empower your financial future with sustainable wealth-building strategies, particularly with rental income!
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Small Conversions Create Low-Barrier Roth Strategy
- In-plan Roth conversions let federal employees convert small amounts yearly without complex tax moves.
- This creates an easy, low-barrier path to gradually shift pre-tax funds into Roth balances.
Use Payroll Withholding For Small Conversions
- If your plan permits in-plan Roth conversions, use payroll withholding to pay conversion taxes for small yearly amounts.
- Let the plan handle withholding when it’s available because it’s the simplest path.
Include Pension In Retirement Planning
- Include your government pension when modeling retirement projections and plan accordingly.
- Count the pension toward earlier retirement age targets like 57 if it applies.