White Coat Investor Podcast

WCI #466: Roth Conversions for a Smarter Retirement

30 snips
Apr 9, 2026
Practical Roth strategies and tax moves for high-income professionals. How to use new 530A accounts for future Roth conversions and even kids’ tax-free savings. Complex TSP and military account rollover tactics to isolate after-tax basis. When refinancing student loans makes sense again. Balancing Roth vs pre-tax choices and avoiding over-saving obsession.
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ADVICE

Start Baby Bonus Accounts Immediately

  • Open a 530A "Trump" baby bonus account as soon as possible to capture the $1,000 seed and earlier compounding.
  • Filing Form 4547 with your 2025 tax return (or an amended 1040X) secures the $1,000 this year and preserves an extra year of growth on the account.
INSIGHT

Fund Kids' Trump Accounts Then Convert To Roth

  • Parents can fund children's 530A accounts with their own money and later perform Roth conversions to supercharge the child's tax-free retirement pot.
  • Regular $5,000 annual contributions plus conversions can meaningfully pre-fund a child's future Roth balance despite missing the baby bonus.
ADVICE

Isolate Basis Before TSP Roth Conversions

  • Consider isolating after-tax basis before doing large TSP Roth conversions to avoid prorated taxation.
  • Roll the non-basis (pre-tax) portion to an IRA or back into another TSP, then convert the tax-exempt basis separately for minimal or no tax.
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