The Best Month to Convert to a Roth (The Mistake $2M+ Savers Make)

If you'd like to talk through your own situation, you can request a free retirement strategy session at: https://www.covenantwealthadvisors.co... A Roth conversion has no best month: in a hypothetical 7% year, January beats December by about $3,360 on $200,000 in the 24% bracket. 📋 START HERE — "What are the most important tax numbers to know for this year?" — the 2026 tax lines to check before you size a conversion. It's one of the free retirement planning checklists we use with clients every day: https://www.covenantwealthadvisors.co... --- Certified Financial Planner Mark Fonville and Covenant Wealth Advisors help folks retire with confidence. This video answers: -When is the best month to do a Roth conversion? -Should I convert to a Roth in January or December? -How much should I convert to a Roth to avoid Medicare and tax cliffs? • Hypothetical: converting $200,000 in January puts 7% growth ($14,000) in the Roth: about $3,360 ahead at 24%, $4,480 at 32%; if the IRA drops 15%, January costs about $7,200. • Since 2018 a Roth conversion can't be undone (2017 Tax Cuts and Jobs Act) and must finish by December 31. • 2026 Income-Related Monthly Adjustment Amount (IRMAA): a couple $1 over $218,000 pays $2,296.80 more a year (CMS), set by income two years earlier. • Hypothetical: a couple at $217,000 after a $100,000 January conversion gets a $25,000 December fund payout, costing about $2,300, more than January's about $1,500 edge at 22%. • 2026 law: for itemizers, the $40,400 state and local tax (SALT) cap shrinks 30 cents per dollar of modified adjusted gross income (MAGI) above $505,000, to about $606,000. Hypothetical: at $505,000, a $100,000 conversion bracket-priced at about $32,500 costs about $43,000, about $10,500 more, about 43% in a 32% bracket. • Paying in 100% of last year's tax (110% if last year's adjusted gross income was over $150,000) generally avoids a federal underpayment penalty (IRC §6654). ⏱️ CHAPTERS 0:00 No best month for a Roth conversion, only a best order 2:18 January vs December: the dollars on $200,000 4:42 Why December wins: no undo button, a December 31 deadline 6:28 The mistake $2M to $10M savers make: sizing to the bracket 7:20 The Medicare surcharge cliff at $218,000 9:08 The 2026 SALT deduction slope above $505,000 11:13 The 4-step Roth conversion rule 13:19 Pay the conversion tax without paying early 14:20 Convert precisely: the bigger lifetime mistake ▶️ RELATED VIDEOS -Roth IRA Conversion Strategy: How to Fill Your Tax Brackets Before RMDs and Cut Lifetime Taxes —    • Roth IRA Conversion Strategy: How to Fill ...   -Roth IRA Conversions: How to Eliminate Estimated Tax Payments (Legally) —    • Roth IRA Conversions: How to Eliminate Est...   -9 Reasons NOT to Convert to a Roth in Retirement When You Have $2M —    • 9 Reasons NOT to Convert to a Roth in Reti...   -5 Reasons a Roth Conversion Can Make Sense at the 24% Tax Rate —    • 5 Reasons a Roth Conversion Can Make Sense...   -Avoid the IRMAA Penalty: Don’t Let $1 Cost You Thousands —    • Avoid the IRMAA Penalty: Don’t Let $1 Cost...   -Is a Roth Conversion a Mistake? 7 Scenarios Where It Makes Less Sense —    • Is a Roth Conversion a Mistake? 7 Scenario...   🏛️ ABOUT COVENANT WEALTH ADVISORS Covenant Wealth Advisors, a d/b/a of Fonville Wealth Management LLC, is a fee-only, fiduciary registered investment advisor with offices in Richmond, Reston, and Williamsburg, Virginia, serving retirees and pre-retirees across the United States who have done a great job saving and now want a plan that brings retirement income, taxes, and investments together. Mark Fonville, CFP®, is the CEO. As fiduciaries, we are obligated to act in our clients' best interests. ⚠️ DISCLOSURES This video is educational and informational only and is not individualized investment, tax, or legal advice, nor a recommendation or offer to buy or sell any security. Consult your own qualified professionals before acting. Names, dollar amounts, and scenarios are hypothetical and illustrative; individual results vary. Figures reflect current-year rules as of the dates noted and are subject to change. Statistics are attributed to their sources, periods, and populations. Fee-only fiduciary status describes compensation and standard of care, not superior performance. Registration does not imply a certain level of skill or training. Tax outcomes depend on your individual circumstances, filing status, and state; Roth conversions are irreversible. 📚 SOURCES Large U.S. stocks rose in 72 of 98 years, 1928 to 2025, with dividends — Aswath Damodaran, NYU Stern: https://pages.stern.nyu.edu/~adamodar... #RothConversion #RetirementPlanning #FinancialPlanning #TaxPlanning