We are excited to announce that, effective January 31st, 2025, KC Financial Advisors officially became CreativeOne Advisors Group. This change reflects our evolution since joining the CreativeOne Wealth family in 2021 and aligns with our commitment to offer you enhanced services, resources, and support tailored to your needs.
While our name is changing, our unwavering commitment to your financial success remains the same. You can continue to rely on the experienced team you know as CreativeOne Advisors Group, now backed by even greater resources and experience.
Thank you for allowing us to be a part of your financial journey. We’re excited about this next chapter and look forward to continuing to serve you with excellence.
Click the link to access our new website.
Is now the right time to do a Roth conversion? David talks through which questions to ask before making the move.
Roth conversions are something we talk about a lot on the podcast. Anytime you can set yourself up to pay less in taxes is generally a good thing for you and your family and the next generation. But is there a point where you become too old to do a Roth conversion?
A Roth conversion is what happens when you take money out of an IRA, put it into a Roth IRA, pay the taxes today, and then future growth will be tax-free. It likely makes a lot of sense now to do the conversion while the market is down. There are no guarantees in life, but there’s a lot of reason to believe that the market will go back up. Would you rather that happen tax-free or tax-deferred?
Start by asking what your tax rate is. Do you expect your tax rate to be higher in the future? You’re likely to have an increase in tax rate once you have to start taking RMDs. Before that happens is a good opportunity to take money out in the form of a Roth conversion. Another time you’ll potentially have an increase in tax rates is once you are widowed. One more question to ask is whether this will be a benefit to your family later on.
The next question to ask is when you’ll start to need the money from your IRA. Maybe you have Social Security and don’t need the money yet. What might the taxes look like when you need the money or when you have to take RMDs?
Do you have non-IRA money to pay the tax when doing a Roth conversion? There are two ways to pay the tax on a Roth conversion. David talks about the different options and which one is potentially more beneficial to you. In 2025, the tax cuts expire unless Congress does something to keep those taxes lower. David doesn’t foresee Congress keeping those taxes lower, so the right opportunity might be right now.
If you are thinking about doing a Roth conversion, make that decision within the next couple of months, before the end of the year. Reach out to a financial advisor to see if a Roth conversion is the right thing for you.
Listen to the entire episode or skip ahead using the timestamps below.
If you ever want your question spotlighted on the show or to ask David something about your retirement, email him at [email protected]
1:53 - Am I too old for a Roth conversion?
3:52 - What’s my tax rate?
9:07 - When will I start to need money from my IRA?
11:07 - Do I have non-IRA money to pay the tax?
15:19 - Taxes are low now but 2025 is right around the corner.
"Roth conversions have to happen before December 31st of that given year for it to be related to the tax year of 2022. "
– David Dickens
CONTACT US
OUR LOCATION
10975 Grandview Drive
Building 27, Suite 190
Overland Park, KS 66210
Get Directions
CONTACT US
OUR LOCATION
10975 Grandview Drive
Building 27, Suite 190
Overland Park, KS 66210
Get Directions
Investment advisory services are offered through CreativeOne Wealth, LLC, a Registered Investment Adviser. CreativeOne Advisors Group is a DBA of CreativeOne Wealth. Insurance services are offered through Licensed Insurance Professionals.