Episode 2 of 6
The Roth Conversion Window
Between retirement at 63 and Social Security at 67, Eric has a 4-year window of low taxable income. His advisor suggests converting $80k/year from Traditional to Roth during this window. The model shows the lifetime tax savings.
Key Insight
Converting $80k/year for 4 years moves $320k from Traditional to Roth at a 22% effective rate — paying $70k in taxes now to avoid $96k+ in taxes on required minimum distributions later. The net lifetime tax savings is approximately $26k, plus all future growth is tax-free.
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