Should I Pay Off My Mortgage Before Doing a Roth Conversion?

You’re 61.

You owe $220,000 on your mortgage.

You also have $300,000 sitting in cash and short-term savings.

Retirement is a year away.

Part of you wants to write the check and be done with the mortgage forever.

No payment.

No debt.

No bank getting money every month after you retire.

That sounds pretty good.

But you also have $1.5 million sitting in a traditional IRA and 401(k).

You’ve been considering a multi-year Roth conversion strategy.

And that $300,000 of outside cash could play a very different role.

It could help you address conversion taxes without pulling additional money out of your retirement accounts.

Now you have two good ideas competing for the same dollars.

Pay off the house?

Or:

Keep the cash available while moving part of the traditional retirement account toward Roth?

That’s a much better question than simply asking whether debt is good or bad.

The Same Dollar Can’t Do Two Jobs

This is the heart of the decision.

Suppose you have $250,000 in cash.

You owe $200,000 on the mortgage.

If you send $200,000 to the mortgage company, that debt disappears.

Great.

But so does $200,000 of your liquidity.

You can’t then turn around and use the same $200,000 to:

• Address Roth conversion taxes
• Cover several years of retirement spending
• Buy a car
• Handle a major home repair
• Cover an unexpected healthcare expense
• Provide a buffer during a bad market

Paying off debt doesn’t destroy wealth dollar-for-dollar. It changes where the wealth lives.

Instead of having cash and a mortgage, you have more home equity and less cash.

That distinction matters in retirement.

Why Paying Off the Mortgage Feels So Good

This decision isn’t purely mathematical.

For someone approaching retirement, a mortgage can feel different than it did at 40.

At 40, you had a paycheck.

At 62, you’re about to shut that paycheck off.

Suddenly the thought of sending $2,000 or $3,000 to a lender every month feels heavier.

You think:

“Why would I retire with debt if I have the money to get rid of it?”

That’s not an irrational thought.

Lower fixed expenses can make retirement feel safer.

But feeling safer and being financially stronger aren’t always exactly the same thing.

Example: Pay Off the House

Suppose you’re married and both 62.

You have:

• $1.6 million traditional IRA and 401(k)
• $250,000 Roth IRA
• $500,000 taxable investments
• $300,000 cash
• $225,000 remaining mortgage

You use $225,000 of cash to eliminate the mortgage.

Now you have:

• No mortgage
• $75,000 remaining cash
• Lower monthly expenses
• More equity in the house

Emotionally, this may feel fantastic.

But now suppose you want to begin a significant Roth conversion program.

Where will the conversion taxes come from?

Your options have changed.

Example: Keep the Mortgage and Preserve Cash

Now run another scenario.

You keep the $225,000 mortgage.

You retain the $300,000 cash reserve.

You begin a multi-year Roth conversion strategy.

Some of that outside liquidity may potentially be used to address conversion taxes.

You continue making the mortgage payment from retirement cash flow.

Is this automatically better?

No.

You’re still carrying debt.

You’re still paying interest.

Your monthly expenses remain higher.

But your liquidity is also much higher.

Now Make the Two Strategies Compete

This is what I want to see.

Scenario A: Pay off the mortgage immediately and do smaller Roth conversions.

Scenario B: Keep the mortgage and preserve outside cash for a larger multi-year Roth conversion strategy.

Scenario C: Pay down part of the mortgage and preserve part of the cash.

Scenario D: Complete selected Roth conversions first, then pay off the mortgage later.

Scenario E: Pay off the mortgage first, rebuild liquidity, and evaluate conversions afterward.

Now we have a real decision.

The Mortgage Rate Matters, but It Doesn’t Decide Everything

People naturally look at the interest rate.

Maybe your mortgage is 3%.

Maybe it’s 5%.

Maybe it’s 7%.

That matters.

But don’t turn the decision into one comparison between a mortgage rate and an investment return assumption.

Retirement adds other variables:

• Liquidity
• Taxes
• RMDs
• Retirement spending
• Healthcare
• Social Security
• Surviving-spouse needs
• Investment risk
• Legacy goals

A mortgage decision can touch all of them.

“But Paying Off the Mortgage Is a Guaranteed Return”

You’ll hear this argument.

When you eliminate interest you otherwise would have paid, that has economic value.

But the broader decision still isn’t complete.

What did you give up to eliminate that interest?

If paying off the mortgage consumes most of your outside liquidity, that matters.

If it forces you to use retirement assets later for taxes or emergencies, that matters.

If it reduces your ability to complete a Roth strategy that modeled better over the long term, that matters.

Don’t stop the analysis at the mortgage statement.

Why Outside Cash Can Be Valuable During Roth Conversions

Suppose you convert $150,000 from a traditional IRA to a Roth IRA.

To the extent the conversion consists of otherwise taxable traditional retirement money, the conversion generally creates taxable income under current federal rules.

That means the resulting tax needs to be addressed.

If you have substantial outside cash, you may have more flexibility in how you handle that tax.

If you used nearly all of your cash to pay off the house, your options may be narrower.

What Happens If I Have to Use IRA Money for the Tax?

Suppose you want $150,000 moved toward Roth.

But you no longer have enough outside liquidity to comfortably address the resulting taxes.

If retirement assets or withholding are used for part of the tax instead, less money may ultimately reach or remain inside Roth.

Other tax considerations can also apply based on age and circumstances.

This doesn’t automatically make the conversion wrong.

It means the mortgage payoff changed the conversion economics.

Paying Off the House Can Reduce Your Monthly Retirement Need

Now let’s give the mortgage payoff its fair argument.

Suppose your principal and interest payment is $2,200 per month.

Eliminating that obligation could reduce required cash flow by more than $26,000 per year before considering other housing costs that remain.

That’s meaningful.

Property taxes don’t disappear.

Insurance doesn’t disappear.

Maintenance doesn’t disappear.

But the loan payment does.

For someone nervous about retirement income, that can provide significant psychological relief.

The Psychological Return Is Real Too

Some people hate debt.

They’ve hated it their entire lives.

They aren’t going to enjoy retirement more because a spreadsheet says keeping a mortgage has a projected mathematical advantage.

Every payment will bother them.

Every market decline will make the mortgage feel worse.

That belongs in the decision.

A retirement plan you hate living with isn’t a great retirement plan.

But Don’t Buy Peace of Mind by Creating a New Fear

This happens too.

You pay off the mortgage.

For about a month, you feel amazing.

Then you look at your bank account.

You used to have $300,000.

Now you have $70,000.

Suddenly you’re thinking:

“What if we need a new roof?”

“What if one of us needs care?”

“What if the market crashes?”

“What if we need $100,000 and all that money is sitting inside the house?”

You eliminated one source of anxiety and created another.

Home Equity and Cash Aren’t the Same Thing

A paid-off house may be extremely valuable.

But you don’t buy groceries with the equity shown on Zillow.

You can’t send $50,000 of home equity directly to the IRS.

Accessing home equity generally requires another transaction, such as selling the home or using an available borrowing strategy for which you qualify.

Cash is already liquid.

That difference becomes more important after the paycheck stops.

What If I Have Plenty of Cash Even After Paying Off the Mortgage?

Now the decision can look very different.

Suppose you owe $150,000.

You have $700,000 of cash and taxable investments outside retirement accounts.

Paying off the mortgage may still leave you with substantial liquidity.

That’s not the same situation as someone with $175,000 of cash using $150,000 of it to eliminate the loan.

The percentage of your liquid assets being committed matters.

What If My Mortgage Is Almost Paid Off?

Suppose you owe only $60,000.

You have $400,000 outside your retirement accounts.

Again, that’s a different problem.

You may be able to eliminate the mortgage without materially damaging your ability to fund retirement spending or address conversion taxes.

Don’t use a blanket rule.

What If My Mortgage Balance Is $400,000?

Now paying it off may consume a major portion of your outside wealth.

You need to ask what remains afterward.

Not just:

“Can I pay it off?”

Ask:

“What does my retirement balance sheet look like the day after I pay it off?”

Should I Take Money From My IRA to Pay Off the Mortgage?

This is a completely different calculation.

Suppose you owe $250,000 and decide to withdraw $250,000 from a traditional IRA to eliminate the loan.

Don’t assume a $250,000 mortgage requires only a $250,000 retirement-account decision.

A taxable traditional IRA distribution can create taxable income.

The tax consequences can be significant.

It may also affect other income-sensitive calculations.

Always evaluate the gross distribution and resulting tax consequences before using traditional retirement money for a large mortgage payoff.

Could Paying Off the Mortgage Compete With the Roth Conversion for Taxable Income?

Yes, especially if the payoff itself requires a large taxable retirement-account withdrawal.

Suppose you withdraw a large amount from your traditional IRA to pay off the house.

Then you also want to do a Roth conversion.

Both can add taxable income to the same year.

That can radically change the tax picture.

What If I Sell Brokerage Investments to Pay Off the Mortgage?

That can create another set of considerations.

If appreciated taxable investments are sold, the sale may create capital gains.

If investments are sold at losses, capital-loss rules may enter the picture.

Then you add a Roth conversion.

Now the mortgage decision, brokerage decision, and Roth decision are all showing up on the same tax return.

Coordinate them.

What If I’m About to Retire?

This is when I would be especially careful about draining liquidity.

Your financial life is about to change.

You’re moving from:

Paycheck + investments

to:

Investments + Social Security + pension + other retirement income.

The first few years can bring surprises.

Your actual spending may be higher than expected.

You may travel more.

You may remodel the house.

You may help a child.

You may buy a vehicle.

Healthcare costs may change.

Markets may fall.

Liquidity buys you time to adjust.

What If the Market Falls Right After I Pay Off the House?

This is a scenario worth imagining before making the decision.

You use $250,000 of cash to eliminate the mortgage.

Three months later, the market falls 25%.

You still need retirement income.

You still want to complete Roth conversions.

But now your cash reserve is much smaller.

Would you still feel comfortable?

If yes, great.

If the thought makes your stomach drop, that tells you something.

Could I Pay Off the Mortgage After the Roth Conversion Years?

Potentially.

This is one strategy worth modeling.

Maybe you preserve outside liquidity during a selected Roth conversion window.

Then after the major conversion years are completed, you evaluate whether paying off the remaining mortgage makes sense.

The mortgage balance may be smaller by then.

Your retirement income may be more established.

Your Roth strategy may be further along.

But waiting also means continuing to make mortgage payments and pay applicable interest.

That’s why we compare it.

Could I Pay Down Half the Mortgage?

Maybe.

The decision doesn’t have to be all or nothing.

Suppose you owe $240,000 and have $300,000 in cash.

Instead of using $240,000 immediately, maybe one modeled scenario uses $100,000 toward the mortgage while preserving the rest.

Whether a partial principal payment changes the required monthly payment depends on the loan and whether options such as recasting are available.

Review the actual mortgage terms before assuming how a partial payoff changes cash flow.

Should I Refinance Instead?

That is another possible mortgage decision, but refinancing has its own costs, eligibility requirements, rates, and loan terms.

For someone approaching retirement, the goal shouldn’t simply be getting the smallest monthly payment.

You need to understand the total obligation and how it fits the retirement plan.

What About the Mortgage Interest Deduction?

Don’t keep a mortgage solely because someone tells you:

“You need the tax deduction.”

The actual federal tax benefit of mortgage interest depends on current tax law and your individual tax situation, including whether and to what extent the interest is deductible.

Have your tax professional evaluate your actual return.

A deduction isn’t the same thing as getting your interest payments back.

The Real Competition Is Debt Reduction vs. Liquidity

People frame this as:

Mortgage vs. Roth conversion.

But underneath it is another fight:

Lower fixed expenses vs. more liquid assets.

Both can create retirement security.

One gives you fewer monthly obligations.

The other gives you more readily available money.

The strongest balance is personal, but it can still be modeled.

“I Just Want the House Paid Off”

This is often the real answer.

Not:

“My discounted cash-flow analysis indicates debt elimination is optimal.”

It’s:

“I just want the house paid off before I retire.”

That’s a real retirement goal.

Don’t hide it behind math.

Put it into the math.

Then see what it costs.

“We Should Be Able to Handle This Ourselves”

You know your mortgage balance.

You know your cash balance.

You know your IRA balance.

It seems straightforward.

You think:

“We should be able to handle this ourselves.”

Then you start asking:

How much cash should we keep?

How much should we convert?

Where do the conversion taxes come from?

What happens if the market falls?

When should we start Social Security?

What happens to future RMDs?

Should we pay off the house now or five years from now?

Now the decision isn’t really about the mortgage anymore.

It’s about coordinating the entire retirement balance sheet.

“I Don’t Want to Ask My Kids for Help”

This sits underneath both sides of the decision.

You want the mortgage gone because you want fewer obligations.

You want cash because you want independence.

You think:

“I don’t want to ask my kids for help.”

You don’t want them making your mortgage payment.

You also don’t want to call them because all your money is locked inside retirement accounts and home equity.

The real goal isn’t simply becoming debt-free.

It’s staying financially independent.

“What If We Mess This Up and Regret It?”

You can feel the permanence of the decision.

You think:

“What if we mess this up and regret it?”

What if you pay off the mortgage and wish you still had the cash?

What if you keep the mortgage and hate making the payment?

What if you use the cash for conversion taxes and later need it for healthcare?

What if you skip the conversion and later wish you had moved more money toward Roth?

There may not be a perfect answer.

But there can be an answer that has survived multiple scenarios before you commit to it.

The Identity Conflict: Debt-Free vs. Financially Flexible

This is what makes the decision difficult.

You spent your whole life hearing:

“Pay off your debts.”

Now someone is telling you there may be a reason to keep a mortgage while sitting on enough money to eliminate it.

That can feel wrong.

At the same time, spending most of your cash right before retirement can also feel wrong.

You want two identities at once:

“We’re debt-free.”

And:

“We have plenty of money available if something happens.”

If you can’t fully have both today, the plan has to decide how much of each matters most.

What About the Surviving Spouse?

This is worth modeling.

Suppose one spouse handles most of the finances.

Would the surviving spouse rather have:

A paid-off home with lower monthly expenses?

More liquid assets?

A larger Roth balance?

A smaller traditional IRA?

Some combination?

Don’t build the plan only for the years when both spouses are alive and healthy.

Could a Smaller Mortgage Make the Surviving Spouse More Secure?

Potentially.

Lower housing expenses can simplify the survivor’s cash flow.

But so can having adequate liquid assets and tax diversification.

This is why the mortgage payoff and Roth conversion shouldn’t be analyzed independently.

What About Future RMDs?

Suppose you use most of your outside cash to pay off the house and therefore reduce or delay Roth conversions.

Your traditional retirement balance may remain larger than it otherwise would have been under a conversion strategy.

Future RMDs may therefore also be larger relative to an otherwise identical scenario in which more assets had previously been converted.

That doesn’t prove you should keep the mortgage.

It simply means the future tax-deferred balance belongs in the comparison.

Could Paying Off the Mortgage Let Me Live on Less?

Yes.

And that may affect the retirement strategy in a positive way.

If eliminating the mortgage materially reduces annual spending, you may need fewer portfolio withdrawals.

That can change how much taxable income you need to create from retirement accounts.

It can also change how much cash you need each year.

Again, the benefit is broader than interest savings.

How Can Roth Conversion Taxes Be Addressed?

Option 1: Preserve Existing Cash

Instead of using all available cash to eliminate the mortgage, some outside liquidity may be preserved to address conversion taxes and retirement expenses.

The tradeoff is continuing to carry the mortgage.

Option 2: Use Taxable Investments

A taxable portfolio may provide liquidity for conversion taxes.

Selling investments can create capital gains or losses, so the tax impact of the sale needs to be considered too.

Option 3: Retirement Assets or Withholding

Another approach may involve retirement assets or withholding.

This can reduce the amount ultimately reaching or remaining inside Roth and may create additional tax considerations.

Tax withholding and estimated tax requirements should be reviewed with a qualified tax professional.

Option 4: Contractual Carrier Bonus Value

When suitable, certain annuity contracts may provide contractual carrier bonus value that can be included in the broader economic comparison.

In some modeled scenarios, contractual carrier bonus value may economically offset some or potentially all of a conversion-tax cost over the strategy period.

This may potentially reduce the need for additional personal out-of-pocket cash from an overall economic standpoint.

The carrier doesn’t assume your IRS tax liability.

A carrier bonus isn’t an IRS tax credit.

Your tax remains your responsibility.

Bonus terms, vesting, surrender provisions, liquidity restrictions, charges, participation rates, caps, spreads, crediting methods, income features, guarantees, and other contractual provisions need to be evaluated carefully.

This Is Where Roth Blueprint Software Comes In

I don’t want to tell someone:

“Never pay off a low-rate mortgage.”

And I don’t want to tell someone:

“Always enter retirement debt-free.”

Both are rules pretending to be analysis.

Using our Roth Blueprint software, we can assess thousands of potential modeled Roth conversion scenarios around the broader retirement picture.

Then the mortgage payoff can be included as a real use of retirement capital.

What Can We Compare?

We can assess different:

• Roth conversion amounts
• Conversion years
• Multi-year conversions
• Variable annual conversions
• No conversion
• Mortgage payoff timing
• Outside liquidity
• Taxable investment balances
• Traditional IRA balances
• Roth balances
• Cash reserves
• Projected conversion taxes
• Different approaches to addressing conversion taxes
• Retirement spending
• Social Security timing
• Pension income
• Potential Medicare considerations
• Projected RMDs
• Surviving-spouse outcomes
• Beneficiary outcomes
• Legacy outcomes

Example: Make the Mortgage and Roth Strategies Compete

Suppose you’re 62 and married.

You have:

• $1.9 million traditional retirement accounts
• $300,000 Roth accounts
• $650,000 taxable investments
• $300,000 cash
• $225,000 mortgage balance

We could compare:

Scenario A: Pay off the $225,000 mortgage now and do no Roth conversions.

Scenario B: Pay off the mortgage now and complete smaller annual conversions.

Scenario C: Keep the mortgage, preserve cash, and complete larger modeled conversions.

Scenario D: Preserve liquidity during selected conversion years and pay off the mortgage later.

Scenario E: Use a partial mortgage reduction while preserving a larger cash reserve.

Then compare the projected results over the retirement horizon.

What Are We Actually Trying to Improve?

Not simply the mortgage balance.

Not simply the Roth balance.

Not simply next year’s taxes.

We want to look at:

• Retirement cash flow
• Required monthly expenses
• Available liquidity
• Traditional retirement balances
• Roth balances
• Projected taxes
• Projected RMDs
• Retirement income
• Potential Medicare-related effects
• Surviving-spouse assets
• Beneficiary outcomes
• Legacy outcomes

The winner should be the retirement strategy, not the mortgage strategy or the Roth strategy by itself.

The Retirement Math Method™

This is why we use our Retirement Math Method™.

I don’t start with:

“Pay off the house.”

I don’t start with:

“Keep the mortgage.”

I don’t start with:

“Use all your cash for Roth conversion taxes.”

Those are conclusions before analysis.

Instead, we make the strategies compete.

Maybe paying off the mortgage immediately wins.

Maybe preserving liquidity for Roth conversions wins.

Maybe paying off part of the mortgage wins.

Maybe converting first and eliminating the mortgage later wins.

Maybe smaller conversions plus a mortgage payoff create the balance you actually want.

Maybe doing nothing wins.

I don’t try to sell you on the strategy. I make the strategy prove itself with the math.

Let the math do the talking.

Frequently Asked Questions About Mortgage Payoffs and Roth Conversions

Should I pay off my mortgage before doing a Roth conversion?

Not automatically. Paying off the mortgage can reduce monthly expenses, but it can also reduce the outside liquidity available for Roth conversion taxes, retirement spending, emergencies, and market declines. Both strategies should be compared together.

Can I do a Roth conversion if I still have a mortgage?

Yes. Having a mortgage doesn’t prevent an otherwise eligible Roth conversion. The mortgage should be included in retirement cash-flow and liquidity planning.

Should I use my cash to pay off the mortgage or conversion taxes?

The same cash can’t do both jobs. Compare the value of lower mortgage expenses with the value of preserving liquidity for conversion taxes and other retirement needs.

Should I withdraw from my IRA to pay off my mortgage?

Be careful. A taxable traditional IRA distribution used to pay off a mortgage can create taxable income. The tax consequences and effect on the broader retirement plan should be calculated before making the withdrawal.

Can I pay off part of my mortgage instead?

Potentially. A partial payoff may preserve more liquidity, although it may not reduce the required monthly payment unless the loan terms or an available recast permit it. Review the mortgage terms with the lender.

Does paying off my mortgage lower my retirement expenses?

It can eliminate principal and interest payments associated with the loan. Property taxes, insurance, maintenance, utilities, association fees, and other housing costs generally remain.

Is keeping a low-interest mortgage always better?

No. Interest rate is only one part of the decision. Liquidity, retirement spending, investment risk, taxes, Roth conversion plans, personal comfort with debt, and surviving-spouse needs can all matter.

Is paying off the mortgage always safer?

Not necessarily. Eliminating debt can reduce fixed expenses, but using most available liquid assets for the payoff can create a different form of financial risk. Both sides should be evaluated.

Should I pay off the mortgage after my Roth conversions are finished?

That is one strategy worth modeling. Preserving outside liquidity during selected conversion years and eliminating the mortgage later may produce a different result from paying it off immediately.

Can Roth Blueprint compare a mortgage payoff with Roth conversion strategies?

Our Roth Blueprint process can assess thousands of potential modeled Roth conversion scenarios incorporating different conversion amounts and years, traditional retirement assets, Roth assets, taxable assets, cash reserves, retirement spending, Social Security, pensions, potential Medicare considerations, future RMDs, surviving-spouse outcomes, beneficiary outcomes, and no-conversion alternatives. Mortgage payoff assumptions and the resulting changes to liquidity and retirement cash flow can then be evaluated as part of the broader retirement decision.

Being Debt-Free and Being Liquid Are Both Forms of Security

That’s the takeaway.

Paying off the mortgage can feel secure.

Having $300,000 available can feel secure too.

Moving money from traditional retirement accounts toward Roth can potentially create another kind of future flexibility.

You don’t have to pretend one of those goals is stupid to choose between them.

They are competing uses of your money.

Put them on the same screen and make them prove which combination works better for your retirement.

Have $500,000+ in Tax-Deferred Assets and Enough Cash to Pay Off Your Mortgage? Let’s Run the Math.

If you have $500,000, $750,000, $1 million, $2 million, or more in traditional IRAs, 401(k)s, or other tax-deferred retirement accounts and you’re also considering using a large amount of cash to eliminate your mortgage, don’t make those decisions separately.

When you meet with me, we can use our Roth Blueprint software and Retirement Math Method™ to assess thousands of potential modeled scenarios.

We can compare:

• Paying off the mortgage immediately
• Keeping the mortgage
• Partial mortgage payoff scenarios
• Paying off the mortgage later
• No Roth conversion
• Smaller annual conversions
• Larger annual conversions
• Multi-year conversions
• Variable annual conversions
• Traditional retirement-account balances
• Roth balances
• Taxable investment balances
• Cash reserves
• Retirement spending
• Projected conversion taxes
• Different approaches to addressing conversion taxes
• Social Security timing
• Pension income
• Potential healthcare-related income considerations
• Projected RMDs
• Surviving-spouse outcomes
• Beneficiary outcomes
• Legacy outcomes

Maybe paying off the house immediately produces the strongest modeled result.

Maybe preserving the cash for a multi-year Roth strategy wins.

Maybe a partial payoff gives you the balance you’re looking for.

Maybe the mortgage should disappear after the conversion window instead of before it.

Maybe smaller conversions make both goals possible.

Don’t force one dollar to do two jobs.

Decide which job creates the stronger retirement.

We don’t sell you a retirement strategy. We run the math and let you decide.

Let the math do the talking.

Schedule Your Roth Conversion Strategy Appointment

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Important Disclosure

This article is for educational purposes only and isn’t intended as individualized tax, legal, accounting, investment, securities, mortgage, lending, insurance, estate-planning, Medicare, Social Security, or retirement-planning advice. FPP Financial does not provide tax or legal advice. Mortgage payoff decisions depend on individual circumstances, including loan terms, interest rates, remaining term, prepayment provisions, available liquidity, taxes, retirement spending, investment assets, emergency reserves, insurance needs, housing plans, and other financial considerations. Paying off a mortgage generally doesn’t eliminate property taxes, homeowners insurance, maintenance, utilities, association fees, or other housing expenses. Access to home equity isn’t guaranteed and may require a sale, loan, line of credit, reverse mortgage or other transaction subject to eligibility requirements, costs, interest, lending standards, property requirements, and applicable rules. Roth conversions generally create taxable income to the extent converted amounts would otherwise be taxable. Qualified Roth IRA distributions are generally tax-free under current federal rules when applicable requirements are satisfied. Taxable Roth conversion income, taxable retirement distributions, investment sales, capital gains, pensions, Social Security benefits, and other income can affect federal and state income taxes, marginal tax rates, the federal calculation determining how much of Social Security benefits is included in taxable income, ACA Marketplace premium tax credits when applicable, Medicare premiums, estimated tax requirements, Net Investment Income Tax calculations in applicable circumstances, liquidity, and other parts of a financial plan. Required minimum distribution rules vary based on birth year, account type, beneficiary status, and current law, and required distribution amounts aren’t eligible for Roth conversion. Roth conversions can potentially reduce future traditional retirement-account balances and future RMDs relative to an otherwise identical no-conversion scenario, but no specific tax, mortgage, investment, Medicare, Social Security, RMD, retirement-income, liquidity, surviving-spouse, beneficiary, or legacy outcome is guaranteed. Roth Blueprint calculations and other projections are based on assumptions and information entered into the analysis and aren’t guarantees of future tax results, mortgage costs, interest rates, account values, investment performance, retirement income, Medicare premiums, Social Security outcomes, RMD reductions, surviving-spouse outcomes, beneficiary outcomes, legacy results, liquidity, or product performance. Insurance and annuity products may contain fees, charges, surrender periods, liquidity restrictions, eligibility requirements, bonus provisions, participation rates, caps, spreads, crediting methods, income features, guarantees, and other contractual terms. Guarantees are subject to the claims-paying ability of the issuing insurer. A carrier bonus isn’t an IRS tax credit and doesn’t transfer the client’s tax liability to an insurance company. Statements that contractual carrier bonus value may economically offset some or potentially all of a modeled conversion-tax cost aren’t statements that the tax disappears or that the carrier directly pays the client’s tax liability. Before completing a Roth conversion, paying off or refinancing a mortgage, taking a large retirement-account distribution, selling investments, drawing down cash reserves, making estimated tax payments, purchasing an insurance or annuity product, or making other retirement decisions, consider working with qualified tax, legal, accounting, financial, investment, securities, mortgage, lending, insurance, Medicare, Social Security, estate-planning, and other appropriate professionals who can evaluate your individual circumstances and current rules.