The Clark Howard Podcast 04.28.25 Prime Time For Roth Conversion / The Return of Big Bank Fees
8 snips
Apr 28, 2025 Discussing prime timing for Roth conversions, it's a golden opportunity for tax-free growth. Listeners learn the ins and outs of navigating retirement accounts and essential calculators. The return of big bank fees adds caution, emphasizing the need to shop smart for financial options. Advice on comparing auto insurance rates and understanding the risks of deregulated banking practices is also highlighted. Plus, tips on managing investments and avoiding financial pitfalls ensure you stay ahead in your financial journey.
AI Snips
Chapters
Transcript
Episode notes
When To Do Roth Conversion
- Doing a Roth conversion when stock values drop can be cheaper because you pay tax on a lower amount.
- Converted money then grows tax-free and can be withdrawn tax-free at retirement without Medicare penalties.
Seek CPA Help for Non-Deductible IRA
- Consult a CPA soon to handle non-deductible IRAs with high income and plan conversions.
- Properly accounting for contributions and earnings is crucial to avoid tax issues and manage RMDs.
Invest Steadily, Avoid Early CD Cash-Out
- Do not cash out CDs early; maintain those investments amid market uncertainty.
- Instead, contribute monthly to a Roth IRA using dollar-cost averaging, targeting a 2065 or 2070 fund.