DC: Hiring a financial professional to do a Roth conversion analysis

[Anonymous]

I'm in D.C. and would like to hire a financial professional to do a Roth conversion analysis. I suppose engaging a CPA on an hourly basis makes the most sense for this. I don't want to engage a "wealth manager" on an ongoing basis. If you have suggestions for such a financial professional in the D.C. area please let me know.

[Anonymous]

I'm not sure why you need someone in the DC area. There's a youtuber who focuses a lot on Roth conversion math.

This is who I'm thinking of:

https://youtu.be/jnebH39pvO4?si=z_bt9b_OAMTLBZZY

Come to think of it, that makes me think there's a program / calculator a person could use.

That said, I would like the same kind of analysis, so if you find someone good, let us know.

[Anonymous]

ChatGPT

[Anonymous]

Anonymous wrote:ChatGPT

Stop trying to make fetch happen

[Anonymous]

A lot of people on bogleheads use PlanVision for Roth conversion analysis and seen to be very happy with their service. Don't expect much hand holding as their business model is about volume and low cost.

[Anonymous]

If you're reasonably knowledgeable, I'd get software. Any consultant is just going to run it through a program anyway.

Best Roth Conversion Analysis Tools
https://www.bogleheads.org/forum/viewtopic.php?t=445429

[Anonymous]

You don’t need a CPA for this. Mathematically it doesn’t really make sense for most people, unless you are in the highest tax brackets already have non-retirement assets (ie brokerage) to pay for the taxes.

[Anonymous]

I agree both that Planvision is probably your best option for this and that the benefits of Roth conversions are often overstated.

You could save a couple hundred dollars by buying Pralana online and DIYing the analysis but I don’t recommend that because Roth conversion analyses are very dependent on assumptions and if you aren’t careful sometimes you will get a garbage in/garbage out recc to do a big conversion (eg if the program thinks you are more aggressive with funds in a Roth and therefore you get higher returns thru a different asset allocation)

[Anonymous]

GPT and I’m being serious - it works and it’ll be more thorough than what some random professional does

[Anonymous]

Anonymous wrote:GPT and I’m being serious - it works and it’ll be more thorough than what some random professional does

No. This is a terrible awful no good very bad idea.

This just isn’t what LLMs are good at— doing math and giving specific accurate answers for your circumstances.

Second if you don’t believe me go check out bogleheads— a surprising number of people have tried this and it never works.

[Anonymous]

Unless you have
Over $10m in pre tax accounts it doesn’t make sense to do a Roth conversion. Your RMDs will never push you into the highest bracket.
If you want to use Roth accounts as inheritance vehicles just convert a moderate amount each year or even a sizable amount in a low income year. Just make sure you have the money to cover the taxes.

[Anonymous]

Anonymous wrote:Unless you have
Over $10m in pre tax accounts it doesn’t make sense to do a Roth conversion. Your RMDs will never push you into the highest bracket.
If you want to use Roth accounts as inheritance vehicles just convert a moderate amount each year or even a sizable amount in a low income year. Just make sure you have the money to cover the taxes.

I’d just leave the kids stocks and they can get a step up in basis when they inherit so it’s effectively tax free.

[Anonymous]

Anonymous wrote:Unless you have
Over $10m in pre tax accounts it doesn’t make sense to do a Roth conversion. Your RMDs will never push you into the highest bracket.
If you want to use Roth accounts as inheritance vehicles just convert a moderate amount each year or even a sizable amount in a low income year. Just make sure you have the money to cover the taxes.

This is incorrect. We have combined 2.5M in pre tax accounts. If we do nothing, our RMDs would knock us into top tax bracket. We’re retiring early to start Roth conversions.

Validated with Projections Lab software and a CFP.

[Anonymous]

Anonymous wrote:
Unless you have
Over $10m in pre tax accounts it doesn’t make sense to do a Roth conversion. Your RMDs will never push you into the highest bracket.
If you want to use Roth accounts as inheritance vehicles just convert a moderate amount each year or even a sizable amount in a low income year. Just make sure you have the money to cover the taxes.


I’d just leave the kids stocks and they can get a step up in basis when they inherit so it’s effectively tax free.

Withdrawals from a traditional 401(k) are fully taxable and treated as ordinary income at your current income tax rate in the year you receive them. They are not subject to lower capital gains tax rates, even if the funds were invested in stocks within the account. If you have a beneficiary named on the 401(k) that person is also subject to income tax on the stocks in the account (and with no stepped up basis). This is because the stocks were bought with pretax income. The tax has to be paid when the money comes out of the 401(k) no matter how it is invested while it is there.

The OP is talking about converting to a Roth so that they can pay the tax now and either not pay it later or let it be inherited and not taxed later.

[Anonymous]

We are slowly converting our 401(k) to Roth because our RMDs will definitely force us into a higher tax bracket later on. We are also pretty sure we won't need most of the money so it will be inherited tax free if we do this. It can grow tax free in the Roth as soon as we convert it. Taxes are a thing, but probably better to get it over with now.