Jill on Money with Jill Schlesinger Has My Roth Conversion Ship Sailed?
7 snips
Apr 8, 2026 Carol, a 69-year-old retiree calling in about a $900k rollover IRA. She discusses whether Roth conversions make sense and details her income, pension, Social Security, and savings. They explore using withdrawals to build taxable savings, managing tax brackets before RMDs, timing and withholding tactics, and tax-free charitable distribution options.
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Carol Rolled A Lifetime Of 401(k) Savings Into A $900k IRA
- Carol saved primarily in a tax‑deferred 401(k) now rolled into a Vanguard IRA totaling about $900k.
- She retired at 69, receives a pension plus Social Security giving roughly $70k annually and owns a paid‑off home worth ~ $500k.
Don’t Convert If You Can’t Pay The Tax From Non‑Retirement Funds
- Do not do a Roth conversion if you cannot pay the conversion tax from non-retirement funds.
- Jill tells Carol she lacks outside cash to pay conversion taxes on a $900k rollover IRA so conversion is not a good option now.
Withdraw Small Annual Amounts To Build A Cash Buffer
- Take controlled withdrawals from the rollover IRA now to build cash reserves and manage future RMDs.
- Jill suggests withdrawing about $30k–$35k a year into a high‑yield savings account to pay taxes and create a cash buffer.