What is a Roth Conversion, and Why Would I Do That?

Paying taxes on purpose sounds backwards...until you understand why Roth conversions are one of the most talked-about retirement planning strategies for people nearing retirement.

In this episode of The Perfect Retirement Plan?, Phillip Smith explains what a Roth conversion actually is, why some retirees use them to reduce future taxes, and when they make sense (and when they don’t). This is a no-hype, plain-English walkthrough designed for people getting close to retirement (and those recently retired) who want clarity, not pressure.

We cover how Roth conversions work, how they show up on your tax return, the five-year rules that confuse almost everyone, and how conversions fit into a broader retirement income, Medicare, and legacy planning strategy. This episode is especially relevant if you’re retiring in Oregon (or another state with income tax) and are thinking about RMDs, Social Security timing, or tax diversification.

If you’ve searched “what is a Roth conversion,” “should I do a Roth conversion,” “Roth conversion explained,” or “how to reduce taxes in retirement,” this episode is for you.

Episode Chapters

00:00 – Why paying taxes on purpose feels wrong
01:48 – What a Roth conversion is and is not
02:44 – How Roth conversions actually work
03:24 – Paying taxes now vs later
04:51 – The five-year rules explained clearly
06:12 – Why retirees use Roth conversions
07:35 – RMDs, Medicare, and tax control
09:16 – When Roth conversions may not make sense
10:13 – The best timing windows for conversions
11:04 – Transfers vs rollovers vs conversions
13:17 – How to execute a Roth conversion correctly
14:19 – A real-world tax example
16:32 – Common Roth conversion mistakes
18:14 – How to think about conversions long-term
18:43 – Action steps and next moves

More resources at TidepoolWealth.com and on YouTube @TidepoolWealth.

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Thanks for tuning in to this episode of The Perfect Retirement Plan, and remember: it's not about having the smartest financial advisor, the most money saved, or the highest probability of retirement success. The perfect retirement plan, for you – is the one you act on.

Phillip Smith, CRPC AIF | Financial Planner
Tidepool Wealth Strategies
450 Country Club Road, Suite 350 | Eugene, OR | 97401

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Additional Disclosures:
The opinions contained in this material are those of the author, and not a recommendation or solicitation to buy or sell investment products. This information is from sources believed to be reliable, but Cetera Wealth Services, LLC cannot guarantee or represent that it is accurate or complete.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.