Episode 301: Why You Must Do a Roth Conversion Before Your Spouse Dies (Bonus: Your Kids Will Love You)

Today’s episode is part of David’s interview with Mark Byelich. David and Mark address Mark’s concept of “suddenly single”. David once met an Uber driver who had saved $1.5M. All financial advisors gave him the same advice “don’t change anything” but David had something different to share. A Roth conversion is something married couples should consider to avoid being automatically catapulted into the 22% or 24% tax bracket if one spouse dies. David breaks down the thought process behind considering a Roth conversion even if you feel like you’ve done everything right. Mark and David touch upon the potential challenges of inheriting an IRA from your parents – and the two types of people who typically inherit them. You may think “I’m never going to be in any bracket other than the 10% or 12%”. But think about what would happen to your heirs if you passed away, says David. David sees the Roth conversion as the single greatest tool that’s available to you today to be able to maximize the amo...