55. 5 Reasons NOT to Do a Roth Conversion in 2026
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55. 5 Reasons NOT to Do a Roth Conversion in 2026
Are you considering a Roth conversion in 2026? Before you make the move, there are five important reasons you may want to think twice. While Roth conversions can be a powerful retirement planning strategy, they aren't right for everyone. The wrong decision could mean unnecessary taxes, higher Medicare premiums, or unexpected financial consequences.
In this episode of the Retirement Income School, Dr. Amanda walks you through five reasons a Roth conversion might not make sense, including needing your money soon, not having a plan to pay the conversion taxes, expecting a lower future tax rate, triggering additional costs like Medicare IRMAA, and leaving your IRA to charity.
You'll also learn what to consider if a Roth conversion does make sense, including how Roth-friendly annuities may help provide principal protection, interest crediting opportunities, and guaranteed lifetime income.
Before converting, it's important to know whether you should convert, how much you should convert, and where your money should go. Having the right strategy can make all the difference in creating a financially relaxed retirement.
Timestamps
00:00 – Should You Do a Roth Conversion in 2026?
01:00 – Reason #1: You Need the Money Soon
02:00 – Understanding the Roth IRA Five-Year Rules
02:57 – Reason #2: You Don't Have a Plan to Pay the Taxes
03:58– Reason #3: Your Future Tax Rate May Be Lower
04:45 – The Widow's Penalty and Roth Conversion Timing
05:05 – Reason #4: A Roth Conversion Could Trigger Additional Costs
05:45 – Medicare IRMAA and Higher Premiums
06:05 – Social Security Taxation and Tax Credits
06:24 – Reason #5: You're Leaving Your IRA to Charity
07:30 – When a Roth Conversion Does Make Sense
07:45 – Where Should Your Roth Money Go?
08:00 – Equities vs. Safe Money Strategies
08:45 – Four Potential Benefits of Roth-Friendly Annuities
09:00 – Principal Protection and Safe Money Allocation
09:30 – Interest Crediting and Lifetime Income Options
10:00 – What Makes an Annuity Roth-Friendly?
10:45 – Coordinating Roth Conversions Year After Year
11:30 – Three Questions to Ask Before a Roth Conversion
12:30 – How to Get Started with a Roth-Friendly Annuity Strategy
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About Dr. Amanda
Amanda Barrientez | PhD, RICP®, RSSA®, NPN #19460436
IBC Practitioner®, Ed Slott's IRA Advisor Group Member®
Court of the Table Member MDRT®
Dr. Amanda is the founder of Retirement Solutions Financial™ and creator of the Retirement Income School™. After losing her father and helping her mom navigate retirement, she felt called to help others avoid the stress and confusion of planning alone.
She specializes in safe money strategies using dividend-paying whole life insurance, fixed index annuities, long-term care coverage, and Social Security claiming strategy. Her mission? To help you protect your wealth and enjoy a secure, stress-free retirement with confidence.
⚠️ 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.