Episode

What Is a Roth Conversion — And How Can You Do It Wrong?

Podcast
Everyone's Talkin' Money
Published
May 27, 2026
Duration seconds
2620
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Canonical source
https://www.everyonestalkinmoneypodcast.com/1532
Audio
https://pscrb.fm/rss/p/traffic.megaphone.fm/YLYLL3999487593.mp3
JSON
/v1/public/podcasts/everyone-s-talkin-money-172936/episodes/what-is-a-roth-conversion-and-how-can-you-do-it-wrong
Markdown
/podcast/everyone-s-talkin-money-172936/what-is-a-roth-conversion-and-how-can-you-do-it-wrong.md

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Summary

Roth conversions sound smart. Tax-free growth, tax-free withdrawals later, more flexibility in retirement — what’s not to like? Well… the tax bill today. That part. In this episode, Shari Rash, founder of GWA Wealth, breaks down what a Roth conversion actually is, how it works, and why “tax-free later” does not mean “free today.” A Roth conversion can be a powerful planning tool, but it can also backfire if you convert too much, do it in the wrong year, ignore the pro-rata rule, forget about Medicare premiums or other income-based thresholds, or assume you can undo it later. Shari explains the difference between a Roth contribution, a Roth conversion, and a backdoor Roth, why the conversion amount usually gets added to your taxable income for the year, and why a large pre-tax retirement balance usually means you need a better plan — not a bigger conversion. You’ll hear: What a Roth conversion is and how it differs from a Roth contribution Why the conversion amount is not the tax bill, but may be taxable income How converting too much in one year can create a bigger tax bill than expected Why the pro-rata rule can make a backdoor Roth less clean than it sounds Why outside cash to pay the taxes matters How Medicare premiums, five-year rules, and tax brackets can affect the decision Why Roth conversions should come from a projection, not a podcast-induced burst of motivation The biggest takeaway: do not hear “Roth conversion” and think, “I should do that.” Hear “Roth conversion” and think, “This is something worth analyzing.” This episode is for educational and informational purposes only and is not individualized financial, investment, tax, legal, or accounting advice. Before making decisions about Roth conversions, retirement accounts, taxes, or investments, talk with a…