Roth Conversion Made Simple with the Roth Blueprint

If you’ve been thinking about doing a Roth conversion, you’re not alone. Many retirees are waking up to the fact that our country is carrying massive debt and tax rates are historically low — but not for long. That’s why I invited Steve Hutchinson, creator of the Roth Blueprint software, to join me for a powerful conversation about how to make Roth conversions simple, efficient, and safe.

👉 If you’d like me to run a Roth Blueprint for you, schedule your Q&A Call here .

Steve has been in the financial industry for over 40 years, and his Roth Blueprint software was designed from the ground up to help retirees and advisors create step-by-step Roth conversion plans. Unlike general financial planning tools that bolt on a conversion module, the Roth Blueprint is purpose-built to maximize this limited-time opportunity.

Why Roth Conversions Matter Now

Our national debt is accelerating at $1 trillion every five months. Combine that with tax rates at 50-year lows, and you can see why we’re at a historic inflection point. Unless Congress acts, tax rates are set to rise after 2025. That means the window for locking in today’s low rates through a Roth conversion is closing fast.

The beauty of a Roth is certainty — once your money is in, it grows tax-free, and you never have to worry about future tax hikes. That’s peace of mind you can’t get in a traditional IRA.

The Phantom Gains Problem

In 2018, Congress eliminated the “undo button” for Roth conversions. Before then, if you converted in a down market, you could recharacterize and fix it. Not anymore.

Now, if you convert in a volatile market and your account drops, you still owe tax on the original amount converted — even if the money has evaporated. That’s what Steve calls a phantom gain — paying tax on money you no longer have. The Roth Blueprint helps solve this by ensuring your conversions are protected from market losses.

Why the 4% Rule Doesn’t Work for Conversions

You may have heard of the 4% rule — the idea that you can withdraw 4% of your portfolio each year and make your money last. The problem? That rule was designed for 30-year retirements, not for a 5- to 7-year Roth conversion window.

Steve illustrated this with two case studies: one retiree converting in a stable market, another in a volatile market. Both averaged the same 6% return, but the retiree in the volatile market ended up with $150,000 less in their Roth — simply because of timing. That shortfall compounds into a seven-figure loss over a lifetime.

How Annuities Create Stability

So how do you avoid the phantom gains problem and sequence-of-returns risk? By using a simplified accumulation annuity. This tool eliminates downside risk by giving you zeros in bad years and a share of the upside in good years. That means your Roth conversions can move forward without being derailed by market swings.

The result: predictable, safe growth during your conversion window. You give up some upside, but you avoid catastrophic losses.

Managing Your Marginal Tax Bracket

Another key lesson Steve Hutchinson emphasizes is marginal tax bracket management. The Roth Blueprint calculates your baseline income (including Social Security, deductions, and more) and shows exactly how much you can convert each year without jumping tax brackets.

Even better, you don’t have to use outside money to pay the tax. The software structures conversions internally, so you don’t have to dip into savings, sell property, or sacrifice lifestyle.

The Power of Annuities in Roth Planning

Annuities aren’t just for stability during the conversion window — they can also provide guaranteed, tax-free lifetime income once the conversion is complete. With today’s high interest rates, payout factors are at their strongest in decades, making this an incredibly powerful time to secure lifetime income you can’t outlive.

For couples, this strategy also protects against the widow’s penalty — the higher taxes a surviving spouse often faces when filing single. By converting to Roth and securing guaranteed income, you create a legacy of stability for your loved ones.

Don’t Miss the Window

The combination of soaring debt and historically low tax rates has created a unique opportunity. But it won’t last forever. If you’ve built significant assets in traditional retirement accounts, this is your chance to move from taxable to tax-free and avoid costly mistakes down the road.

Thanks to Steve Hutchinson’s Roth Blueprint software, the process is no longer overwhelming. It takes the guesswork out of conversions and helps you maximize this once-in-a-generation window.

Ready to See Your Roth Blueprint?

The best way to know if a Roth conversion is right for you is to see the numbers for yourself. I’ll run a personalized Roth Blueprint that shows how much you can convert each year, how to manage your tax brackets, and how to create reliable, tax-free retirement income.

👉 Schedule your Roth Blueprint Q&A Call  today and let’s map out your path to a tax-free retirement.

DISCLAIMER:
The information in this podcast is provided for general educational purposes only and does not constitute financial, legal, or tax advice. Retirement Income School™ and Dr. Amanda Barrientez do not provide individual investment recommendations. Always consult with a licensed advisor or tax professional before implementing any strategy discussed.