Rendering to Caesar What He Never Asked For (The Roth Conversion Mistake)

Don't convert everything in your IRA to Roth. A Roth conversion isn't magic, and for Christians who tithe it can cost more than it saves. If you're retired or close to it, have a large IRA, and give to your church, this one is for you. A Roth conversion means you paid tax on that money on purpose. You did it so you could spend it later without paying tax again. But you were never going to spend the giving money. You were going to give it. And a traditional IRA is the best account in the world to give from, because at 70 and a half a qualified charitable distribution lets that money go to your church with no tax on it at all. So when you convert the giving money to Roth, you pay tax you never had to pay. I walk through Hank and Peggy Hill, a hypothetical couple, both 65, delaying Social Security to 70. We compare three roads. No conversion. Converting to fill the 12% bracket. Converting to fill the 22% bracket. Then we look at where they land at age 90, and what happens when the tithe comes out of the wrong account along the way. The rule I keep coming back to: convert the living money, leave the giving money. Chapters 0:00 Don't convert everything to Roth 1:05 Two kinds of money in your IRA 2:33 Meet Hank and Peggy Hill 3:09 Plan 1: Do nothing 4:13 Plan 2: Convert until it's all Roth 5:14 Plan 3: Fill the 12% bracket 6:09 Plan 4: Fill the 22% bracket for 10 years 7:36 Plan 4 vs. converting everything 8:06 Never give from your Roth 9:19 How to size your conversion 10:10 Render unto Caesar Watch next Donor-advised fund plus Roth conversion:    • 10 Years of Giving You're Doing Anyway Can...   Your IRA is a tax time bomb unless you give it away:    • Your IRA Is a Tax Time Bomb Unless You Giv...   Stop converting your IRA to Roth if you plan to give:    • Stop Converting Your IRA to Roth (If You P...   Got a money question or worry? The answer is probably GivMoar. demlandwealth.com/givmoar Hypothetical example for educational purposes only. Not tax, legal, or investment advice. Talk to your own advisor before you act on anything here. Demland Wealth LLC is a state-registered investment advisor in Ohio and Indiana. #RothConversion #QCD #RetirementPlanning #ChristianStewardship #GivMoar