The Roth Conversion Checklist (AMA, E145)

The Roth Conversion Checklist (AMA, E145)

Author: Jesse Cramer July 8, 2026 Duration: 53:49

Are Roth conversions good for YOU? Why - or why not? Today's AMA episode is all about that topic. 

Looking for a financial planner?  → PlanWithJesse.com

In this Ask Me Anything episode, Jesse answers a wide range of listener questions about Roth conversions, moving beyond the basic mechanics to explore the nuanced trade-offs that determine whether a conversion creates value or simply accelerates taxes unnecessarily. He begins by reviewing the core Roth conversion framework, explaining that the strategy works best when investors can intentionally pay taxes today at significantly lower rates than they expect to face in the future, emphasizing that tax arbitrage—not tax avoidance—is the primary objective. From there, he tackles common questions about whether Roth conversions are truly necessary, arguing that even ideal candidates often view conversions as optimization opportunities rather than make-or-break retirement decisions. He explores the merits of micro-conversions versus larger bracket-filling conversions, the concept of "neutral" Roth conversions where tax rates remain unchanged, and the non-mathematical benefits that may justify them, including reduced future RMDs, protection against the widow's tax trap, estate-planning simplicity, and greater certainty around future tax policy. Jesse also examines whether retirees should prioritize Roth assets for heirs, cautioning that aggressive conversion strategies can sometimes leave both retirees and beneficiaries worse off if the taxes paid today outweigh future savings. Additional listener questions address the timing of Roth conversions, the dangers of trying to time the market, the elimination of conversion reversals under current tax law, and the importance of factoring state income taxes into conversion decisions, particularly for retirees planning interstate moves. He concludes with a comprehensive Roth conversion checklist covering tax bracket management, break-even analysis, Social Security taxation, IRMAA surcharges, ACA healthcare subsidies, charitable giving strategies, estate planning considerations, and numerous other interactions that can dramatically alter the value of a conversion. Throughout the episode, Jesse argues that Roth conversions are neither universally beneficial nor inherently necessary, but instead represent one of many planning levers that should be evaluated carefully through the lens of taxes, timing, opportunity cost, and long-term financial goals.

Key Takeaways:
• Roth conversions work best when current tax rates are meaningfully lower than future tax rates.
• Roth conversions are often oversold as a universal solution. The correct Roth conversion amount is sometimes zero.
• Roth assets are generally more attractive to heirs than traditional IRA assets.
• Social Security taxation and IRMAA surcharges can dramatically increase the effective cost of conversions.
• ACA healthcare subsidies can be reduced or eliminated by Roth conversion income.
• Roth conversions should be evaluated within the context of a complete financial plan rather than as a standalone strategy.

Key Timestamps:
(01:20) – The Basics of Roth Conversions
(04:31) – When to Do a Roth Conversion
(09:08) – Roth Conversions Are Oversold
(10:46) – Q1: Should I Just Not Bother with Roth Conversions?
(15:28) – Q2: Should I Err on the Side of Too Small a Conversion?
(19:23) – Q3: What About Neutral Roth Conversions?
(24:57) – Q4: Should I Leave Roth Dollars for My Heirs?
(28:48) – Q5: Dollar-Cost Averaging vs. Lump-Sum Roth Conversion?
(32:59) – Q6: Can You Undo Roth Conversions?
(36:33) – Q7: In What State Should I Do Roth Conversions?
(41:26) – Q8: How Do Roth Conversions Interact with Social Security & IRMAA?
(42:53) – The Roth Conversion Checklist

Key Topics Discussed:
The Best Interest, Jesse Cramer, Wealth Management Rochester NY, Financial Planning for Families, Fiduciary Financial Advisor, Comprehensive Financial Planning, Retirement Planning Advice, Tax-Efficient Investing, Risk Management for Investors, Generational Wealth Transfer Planning, Financial Strategies for High Earners, Personal Finance for Entrepreneurs, Behavioral Finance Insights, Asset Allocation Strategies, Advanced Estate Planning Techniques

More of The Best Interest:
Check out the Best Interest Blog at https://bestinterest.blog/
Contact me at jesse@bestinterest.blog
Need a financial planner?  → PlanWithJesse.com 

The Best Interest Podcast is a personal podcast meant for education and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.


Navigating the world of money can feel overwhelming, with a constant stream of conflicting tips and trendy, quick-fix schemes. Personal Finance for Long-Term Investors-The Best Interest cuts through that noise. Host Jesse Cramer brings a unique perspective to the conversation, transitioning from his background as an aerospace engineer to his work as a fiduciary financial advisor. This podcast is built on the principle that genuine wealth isn't built overnight through speculation, but through consistent, well-reasoned decisions made over decades. Each episode delves into the mechanics and mindset required for that journey, exploring topics like retirement planning, intelligent investing, and the behavioral aspects of managing money. You'll find discussions that go beyond surface-level advice, examining the "why" behind proven strategies and how to apply them to your own life. The tone is conversational and grounded, avoiding financial jargon in favor of clear explanations. It’s a resource for anyone tired of the hype and seeking a sustainable path forward. By focusing on evidence-based ideas and patient execution, this podcast aims to provide listeners with the tools and confidence to build a secure financial future on their own terms. Tune in for a thoughtful, long-term approach to personal finance that prioritizes your best interest.
Author: Language: English Episodes: 50

Personal Finance for Long-Term Investors
Podcast Episodes
Less Wealth, More Certainty: Why Annuities Are Rarely Worth It (E131) [not-audio_url] [/not-audio_url]

Duration: 53:03
In this expansive and deliberately contrarian episode, Jesse takes on annuities—not with a sales pitch or a blanket dismissal, but by putting them under a rigorous planning lens rooted in risk, probability, and real reti…
Don't Let a Scary Economy Cause Bad Retirement Decisions (E130) [not-audio_url] [/not-audio_url]

Duration: 51:36
Jesse is joined by Cullen Roche—financial writer, macro thinker, and founder of Discipline Funds—for a clear-eyed conversation about how money actually works, why so much financial commentary gets it wrong, and how inves…
"Isn't My Portfolio the Same as My Financial Plan??"  (AMA, E129) [not-audio_url] [/not-audio_url]

Duration: 41:18
On Jesse's 13th AMA episode, he steps back from tactics and returns to first principles, answering listener questions that cut to the core of what financial planning actually is—and what it is not. He begins by dismantli…
11 "Bad" Financial Moves...That Are Actually Fine (E128) [not-audio_url] [/not-audio_url]

Duration: 41:28
In this candid solo episode, Jesse walks through a series of financial decisions that look "wrong" on paper but make complete sense when viewed through the lens of real life, values, and tradeoffs. Using personal example…
"The Most Important Number" in Your Retirement?! (E127) [not-audio_url] [/not-audio_url]

Duration: 53:37
Jesse is joined by Jeremy Keil—Certified Financial Planner, Chartered Financial Analyst, author of Retire Today, and host of the Retirement Revealed podcast—for a wide-ranging conversation that reframes how people should…
Will You Retire in 2026?? (AMA, E126) [not-audio_url] [/not-audio_url]

Duration: 50:46
On Jesse's 12th "Ask Me Anything" episode, he opens the year by tackling the questions that tend to surface when calendars turn and retirement feels closer than ever. He begins with a thoughtful exploration of whether "t…
My Ghosts of Financial Past, Present, and Future (E125) [not-audio_url] [/not-audio_url]

Duration: 51:11
In this Christmas episode, Jesse steps back from year-end checklists and market noise to tell a more personal story—one shaped by the "ghosts" of his financial past, present, and future. He begins with the early experien…
The Scenario When HSA's Are a *BAD* Account (AMA, E124) [not-audio_url] [/not-audio_url]

Duration: 50:11
On Jesse's 11th "Ask Me Anything" episode, he unpacks four questions that sit at the center of real-life financial decision-making. He starts with a grounded look at the 15-year vs. 30-year mortgage debate, cutting throu…
Should "Coast FI" Be the *Real* Goal? (E123) [not-audio_url] [/not-audio_url]

Duration: 38:53
Jesse sits down with Andy Hill—personal finance educator, podcast host, and creator of Marriage, Kids, and Money—for a candid conversation about building wealth while building a life you actually enjoy. Andy shares how a…
Why Retirees Struggle with Health Over the Holidays (E122) [not-audio_url] [/not-audio_url]

Duration: 47:44
Today, Jesse is joined by Dr. Phil Pearlman—psychologist, behavioral finance veteran, and founder of the Pearl Institute—for a conversation about how long-term health and long-term wealth are two sides of the same coin.…