The Big Surprise About Roth Conversions Later in Life

You might be surprised to learn that converting to a Roth IRA later in life isn't always the slam dunk many believe.

Here's why:

While a Roth conversion allows for future tax-free growth, doing it in your 60s or beyond could push you into a much higher tax bracket today—costing you more in the short term than you’ll save in the long run.

A late-stage Roth conversion might also impact your Medicare premiums or Social Security taxes, leading to unexpected costs few people talk about.

For highly compensated professionals and business owners, timing is everything. If you have uneven income or large bonuses, it could make sense to convert sooner rather than later—or to spread conversions over several years for better tax efficiency.

Every scenario is unique, and what works for one person may not be smart for another. Consulting with a professional can help you make the right choice for your future.

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Sentient Financial is a state‑registered investment adviser in California. This post is for informational purposes only and is not an offer to buy or sell securities or to provide investment advice. Past performance does not guarantee future results.

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Sentient Financial, LLC is a financial advisor serving Ideal clients are working professionals 40-65 who make more than $250K year. Often these are sales professionals making large quarterly or annual bonuses who face uneven cash flows and potential high tax situations. Some are C-Suite executives who work 60 hours/week or travel extensively who need a personal CFO to help manage investment and taxation issues. Small business owners with less than 10 employees who can benefit from business and personal financial planning.