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Roth Conversion


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Roth Conversion Strategy Mapped Year By Year.

Roth conversion strategy modeled year by year so the bracket math works. The window between when work income stops and when RMDs begin is often the largest tax opportunity of your life. 

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Fiduciary CFP® Multi-Year Tax Modeling Bracket Math Tax-Sensitive

WHY CLIENTS CHOOSE US

Roth conversions are simple to execute and hard to time well.

Multi-year tax model

We project your taxable income over the conversion years and identify the bracket fills that will produce the biggest lifetime tax savings.

Conversion ladders for early retirees

If you stop working before 59 1/2, a conversion ladder gives you penalty-free access to the converted principal after five years. We map the ladder schedule.

Pay the tax from outside the IRA

Paying the conversion tax from taxable assets, not from the IRA itself, dramatically improves the math. We coordinate the source of funds.

Honest answer when not to convert

If you've limited cash to pay the tax, expect lower retirement income than you've now, or face state-tax issues from moving, the conversion may not pencil out. We tell you.

Long-term, not transactional

We meet on a real cadence, usually quarterly. The plan flexes as your life and the tax code change. Most relationships span decades.

South Florida-rooted, nationally licensed

Offices in Boca Raton and Plantation, plus licensed in all 50 states. Existing clients keep us when they move.

Why the math matters.

A Roth conversion moves money from a traditional IRA or 401(k) into a Roth IRA. You pay income tax in the year of the conversion. In exchange, the converted amount grows tax-free for the rest of your life and your beneficiaries' lives, and it never has to come out as a required minimum distribution.

The case for converting comes down to whether you expect to be in a lower tax bracket now than you (or your beneficiaries) will be later. For pre-retirees in the low-tax window between when employment income stops and when Social Security and RMDs begin, the answer is often yes by a wide margin.

What we cover.

Multi-year tax projection

  • We model your taxable income across the conversion years, identify the bracket fills, and recommend annual conversion amounts that keep you below the next bracket threshold (or that intentionally fill it, when the math says to).

Conversion ladder schedule

  • For clients who retire before 59 1/2 and need access to retirement funds, we set up a 5-year conversion ladder so each year's converted principal becomes accessible without penalty after the 5-year seasoning period.

Tax source coordination

  •  Paying the conversion tax from taxable assets (rather than from the IRA itself) is usually the right move. We coordinate the cash flow.

IRMAA awareness

Conversions can push you into a higher Medicare premium bracket. We model the IRMAA hit and decide whether it's worth the lifetime tax savings.

State tax considerations

 Florida has no state income tax, which makes Roth conversions in Florida residency more efficient than the same conversions done in a high-tax state. We coordinate with relocations.

RELATED SERVICES

Where Roth conversions fit.
Roth conversion planning is rarely a standalone decision. It connects to:

Tax Planning

The broader tax strategy. Year-round positioning, capital gains, charitable giving.

See tax planning →

Retirement Planning

The income years are where conversions happen. Withdrawal sequencing, RMDs, Social Security timing all matter.

See retirement planning →

Investment Management

What gets converted (the actual securities) and how the Roth grows post-conversion.

See investment management →

Who This Is For

Best-fit situations.

The clients who benefit most from Roth conversion planning:

Pre-Retirees in the Gap Years Executives Leaving High-Income Roles Business Owners Post-Sale Inheritors Funding Their Own Plan

If you're within ten years of retirement, this is the window. The Roth conversion windows, the Social Security claim decision, the healthcare bridge, the rollover timing. All of it benefits from real-time modeling and a written plan.

RELATED READING

More From The Retirement Planning Blog

Posts our planning team has put together on this topic.

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What Is a Roth 401(k)?

Roth 401(k) plans combine features of traditional 401(k) plans with those of a Roth IRA.

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Traditional vs. Roth IRA

One or the other? Perhaps both traditional and Roth IRAs can play a part in your retirement plans.

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QUESTIONS, ANSWERED
Common questions about Retirement Planning

  • A Roth conversion moves money from a traditional IRA, 401(k), 403(b), or similar pretax retirement account into a Roth IRA. The amount converted is treated as ordinary income in the year of the conversion. In exchange, the money grows tax-free, comes out tax-free in retirement, has no required minimum distribution at age 73, and passes to your beneficiaries tax-free.
  • The strongest window is usually after you stop earning W-2 income and before Social Security or RMDs begin. That gives you years where your taxable income is low and your withdrawal rate is mostly flexible. Inside that window, you fill up the lower tax brackets each year with conversions. Outside that window, conversions can still make sense, but the math is closer to neutral.
  • A Roth conversion ladder is a multi-year sequence of conversions designed to give you penalty-free access to retirement assets before age 59 1/2. Each conversion has its own 5-year seasoning period after which the converted principal can be withdrawn without penalty. By converting annually for several years in a row, you create a steady stream of accessible funds. Used by early retirees who need pre-59 1/2 income.
  • Technically no, and usually you should not. Paying the conversion tax from taxable (non-retirement) assets means the full amount gets to grow tax-free inside the Roth. Paying the tax from the conversion itself reduces what makes it into the Roth and dilutes the long-term benefit. We coordinate the tax cash flow so this works.
  • IRMAA is the income-related monthly adjustment amount for Medicare Parts B and D. If your modified adjusted gross income crosses certain thresholds, your Medicare premiums increase, sometimes meaningfully. Roth conversions count toward IRMAA in the year of the conversion. We model the IRMAA hit alongside the lifetime tax savings and decide whether it's worth crossing the threshold.

Find Us

Two offices, one team.

Boca Raton (Home Office)

1200 North Federal Highway, Suite 300

Boca Raton, FL 33432

(561) 210-7339

Monday to Friday, 8:30 AM to 4:30 PM ET

Plantation

7901 SW 6th Court, Suite 320

Plantation, FL 33324

(954) 809-3553

Monday to Friday, 8:30 AM to 4:30 PM ET

Serving

South Florida cities and neighborhoods

Palm Beach County

Boca Raton Highland Beach Delray Beach Boynton Beach West Palm Beach Palm Beach Palm Beach Gardens

Broward County

Plantation Fort Lauderdale Coral Springs Weston Cooper City Parkland

Ready to talk about roth conversion?

The first meeting is a conversation, not a sales pitch. We'll talk about where you are, what you're working through, and whether Intercoastal is the right fit. In person in Boca Raton or Plantation, or by video from anywhere.

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