Should I Do Roth Conversions Before Deferred Compensation or RSUs Hit My Income?

You’re 60 years old.

You’ve spent 25 or 30 years building your career.

Your traditional 401(k) and IRA now total $2 million.

You’re planning to retire next year.

So you look at the calendar and think:

“Once I stop working, my income drops. That’s when I’ll start doing Roth conversions.”

Maybe.

But then you pull out your compensation documents.

You still have deferred compensation scheduled to pay after retirement.

You have RSUs that may vest or settle.

There may be a final bonus.

There may be other stock compensation.

Your paycheck might stop.

Your compensation income might not.

That’s where Roth conversion planning for executives can get much more interesting.

Quick Answer: Should You Convert Before Deferred Compensation Pays Out?

Potentially.

If you know substantial deferred compensation or stock compensation is expected to create taxable income in future years, the years before that income arrives may deserve special attention.

But don’t automatically convert everything before the payout begins.

You need to compare:

• Your current salary years
• Your retirement year
• Your deferred compensation years
• Your RSU vesting or settlement schedule
• Your pension start date
• Your Social Security start date
• Medicare-related income considerations
• Future RMDs

Your best Roth conversion year may not be the first year you call yourself retired.

Retirement Doesn’t Always Mean Your Income Falls Off a Cliff

This is especially true for executives.

A typical retirement example might look like this:

Salary stops.

Income falls.

Roth conversions begin.

But your situation might look more like:

Salary stops.

Deferred compensation begins.

RSUs continue to settle.

A bonus arrives.

Pension starts.

Then Social Security starts.

Then eventually RMDs enter the picture.

You can retire from the company without immediately retiring from taxable compensation.

Example: The Executive Who Thought Age 62 Would Be a Low-Income Year

Suppose you’re 61 and earn $350,000.

You plan to retire at 62.

You have:

• $2.2 million in traditional retirement accounts
• $300,000 Roth IRA
• $900,000 taxable investments
• $400,000 cash
• A nonqualified deferred compensation plan
• Unvested or unsettled equity awards

You think:

“I’ll retire next year and convert $300,000.”

Then you discover that your post-retirement compensation schedule could produce another $200,000 of income that year.

Now that $300,000 Roth conversion isn’t landing in the income environment you expected.

What Is Nonqualified Deferred Compensation?

Nonqualified deferred compensation arrangements can allow compensation to be paid at a future date under the terms of the applicable plan.

Executives may encounter plans where compensation is scheduled for payment:

• At retirement
• At separation from service
• On specified future dates
• Over a series of years
• Under another permitted payment schedule

The exact tax and payment rules can be complex.

And the payment election may have been made years before you ever started thinking seriously about Roth conversions.

That old deferred compensation election can become a major variable in your new retirement tax plan.

Why Deferred Compensation Can Compete With Roth Conversions

A taxable Roth conversion generally adds taxable income to the year of conversion to the extent the converted amount would otherwise be taxable.

Deferred compensation may also create taxable compensation income under the rules governing the arrangement.

When both occur in the same year, they can stack.

That’s the problem.

You’re not deciding between:

“Deferred compensation or Roth conversion.”

You may be deciding:

“How much of both do I want landing on the same tax return?”

Example: $150,000 Deferred Compensation Plus a $200,000 Conversion

Suppose you’ve retired.

You receive $150,000 of deferred compensation during the year.

You also convert $200,000 from your traditional IRA to Roth.

Before considering other income, you’ve already introduced substantial income into the tax picture.

Now add:

• Interest
• Dividends
• Capital gains
• Spouse’s income
• Pension income
• Social Security when applicable

That’s why the conversion amount shouldn’t be selected in isolation.

What About RSUs?

Restricted Stock Units can create another income event.

RSUs are generally promises to deliver stock or cash after applicable conditions are satisfied.

The timing of income inclusion can vary based on the award and applicable tax rules, but RSUs commonly create compensation income when the relevant vesting and settlement events occur.

If you have RSUs scheduled around retirement, put the vesting and settlement dates on the same timeline as your Roth conversions.

Don’t plan the IRA while ignoring six figures of stock compensation sitting on another statement.

Example: Your RSUs Continue After Retirement

Suppose you’re retiring from a technology company.

You have:

• $1.7 million 401(k)
• $500,000 traditional IRA
• $400,000 Roth assets
• $1 million taxable portfolio

You also have equity awards that may continue vesting or settling under the terms of your compensation agreement.

You retire in March.

Your salary disappears for most of the year.

But $180,000 of stock compensation still enters the income picture.

Calling that a “low-income retirement year” without looking at the equity schedule could be a costly assumption.

What About a Final Bonus?

This can catch people too.

You retire early in the year.

Then a performance bonus from the prior year is paid.

Maybe there’s accrued compensation.

Maybe severance applies.

Maybe another employment-related payment arrives.

You can’t assume the year after you stop showing up at the office automatically becomes a clean Roth conversion year.

Build an Income Timeline Before You Build a Conversion Schedule

This is one of the first things I’d want to see.

Put the years across the top.

Then list the expected income underneath.

For example:

• 2027: salary + bonus
• 2028: partial salary + RSUs + deferred compensation
• 2029: deferred compensation + RSUs
• 2030: deferred compensation
• 2031: pension begins
• 2032: Social Security begins
• Later: RMDs

Now the Roth conversion window becomes easier to see.

Don’t start by asking how much to convert. Start by asking where the income gaps actually are.

There May Be a One-Year Window Nobody Notices

This is where detailed planning can pay off.

Suppose your salary stops in June.

Your first major deferred compensation installment doesn’t arrive until the following calendar year.

That partial retirement year might look very different from the years around it.

Or maybe the opposite happens.

Your final bonus and RSU settlement make the retirement year unusually high-income.

Then the following year becomes more attractive.

The calendar matters.

Should I Convert Before I Retire?

Maybe.

That sounds counterintuitive because your salary is still high.

But imagine your deferred compensation after retirement is even larger.

Or imagine you know your future income will remain elevated for several years.

Then converting a limited amount before retirement might deserve comparison.

“I’m still working” doesn’t automatically mean “don’t convert.”

It means the salary belongs in the math.

Should I Wait Until All My Deferred Compensation Is Finished?

Not automatically.

Suppose your deferred compensation will pay over 10 years.

If you refuse to consider any Roth conversion until the final payment arrives, you may lose a decade of potential conversion years.

Meanwhile:

• Your traditional IRA may continue growing
• Social Security may begin
• Your pension may begin
• RMDs may eventually enter the picture

Waiting for a perfectly clean income year may mean waiting for a year that never comes.

The Better Question: How Much Conversion Fits Around the Compensation?

Suppose you receive $100,000 per year of deferred compensation for five years.

Instead of saying:

“No conversions for five years.”

we could compare:

• No conversion
• $50,000 conversions
• $100,000 conversions
• $150,000 conversions
• Variable conversions each year

Maybe a smaller conversion during the deferred-comp years produces a stronger result than waiting.

Maybe waiting wins.

Run it.

What If the Deferred Compensation Is Paid as a Lump Sum?

Now the timing can become even more important.

Suppose you retire at 63 and receive a large deferred compensation payment in the following year.

That year may be a poor candidate for an aggressive Roth conversion compared with surrounding years.

But maybe the year before the payment is attractive.

Or the year after.

A known future income spike should be visible on the Roth conversion map before you move the IRA.

What If My Deferred Compensation Pays Over Five or Ten Years?

Then you may not have one giant spike.

You may have a long income plateau.

That creates a different planning problem.

You’re looking for the strongest conversion strategy inside an extended period of compensation income rather than waiting for the compensation to disappear.

What If My Spouse Is Still Working?

This matters too.

You may retire at 60 while your spouse continues working until 65.

Your salary stops.

Your deferred compensation begins.

Your spouse’s salary continues.

Then your spouse retires.

Now household income changes again.

A married couple should look at the household timeline, not just the retiring executive’s income.

What If I’m Single?

The planning can become even more sensitive to large income events.

You don’t have a spouse’s income to coordinate.

But you also don’t have a spouse sharing the household tax return.

A large deferred compensation payment plus a large Roth conversion can create a very different result than a conversion during a lower-income year.

What If I’m Already on Medicare?

Then Roth conversion income and compensation income may also affect income-related Medicare premium calculations under applicable rules.

That’s another reason I don’t want to look only at the federal income-tax bracket.

A year with:

• Deferred compensation
• RSU income
• Roth conversion income
• Capital gains

can affect more than one part of your financial picture.

What If I’m Not on Medicare Yet?

Then the years before Medicare may deserve separate analysis.

Maybe you’re retiring at 61.

Deferred compensation continues through 64.

Medicare starts at 65.

Social Security begins at 67.

You don’t have one Roth conversion window.

You have several phases.

The strongest conversion amount may change as you move from one phase to the next.

What If I Have a Pension Too?

Then add it to the timeline.

Maybe deferred compensation ends the same year the pension starts.

Maybe they overlap.

Maybe the pension starts later.

The point isn’t to isolate each income source into a separate retirement strategy.

The point is to see what happens when they land together.

What If I Delay Social Security?

That can create another variable.

Suppose deferred compensation ends at 65.

You plan to start Social Security at 70.

Those years in between could potentially create a different conversion environment.

But if your traditional IRA is already very large, waiting until then may or may not produce the strongest long-term result.

Compare it.

What If I Have $3 Million in My 401(k)?

Now waiting becomes a bigger decision.

Suppose you’re 60 with:

• $3 million traditional 401(k)
• $500,000 Roth assets
• $1.5 million taxable investments
• Deferred compensation for the next seven years

You could say:

“I’ll wait until the deferred compensation ends.”

But what might the traditional account be worth by then?

What happens to future RMDs?

What happens if one spouse dies?

What happens if tax conditions change?

The cost of waiting belongs in the analysis too.

The Executive’s Hidden Problem: Too Many Future Income Sources

You spent your career building wealth.

Now you may have:

• 401(k)
• IRA
• Deferred compensation
• RSUs
• Company stock
• Brokerage assets
• Pension
• Social Security

That’s a good problem.

But it’s still a problem to organize.

You don’t necessarily need more financial products.

You need to know which income source is going to hit when.

“I Thought Retirement Was Supposed to Simplify This”

This is the frustrating part.

You finally stop working.

You think the complicated compensation years are behind you.

Then you’re staring at:

Deferred compensation schedules.

RSU statements.

IRA conversion decisions.

Medicare.

Social Security.

Future RMDs.

You think:

“I thought retirement was supposed to simplify this.”

It can.

But first you need to unwind the income streams your career created.

“We Should Be Able to Handle This Ourselves”

You handled complex decisions for your entire career.

You managed teams.

You negotiated contracts.

You understood compensation packages.

You think:

“We should be able to handle this ourselves.”

Then you realize you’re trying to coordinate six different income sources across ten or twenty years.

Competence isn’t the problem.

The number of moving pieces is.

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

You’ve built enough wealth that you shouldn’t have to.

That’s how you see it.

You think:

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

You want your retirement income organized.

You want the taxes understood.

You want your spouse protected.

You want your children to inherit whatever is left without having to clean up a financial mess.

That desire for independence is part of the strategy.

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

This is where successful executives sometimes freeze.

You know enough to understand that a six-figure Roth conversion isn’t a casual decision.

You also know waiting has consequences.

You think:

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

So instead of deciding, you postpone.

Another year passes.

The IRA grows.

Another compensation payment arrives.

Nothing gets modeled.

Delay is still a decision.

The Identity Conflict: You Were Paid to Make Decisions

This can be surprisingly uncomfortable.

At work, people came to you for answers.

You were the executive.

You made the call.

Now you’re looking at your own retirement and thinking:

“Why can’t I tell which option is better?”

Because this isn’t a management decision.

It’s a math problem with tax, timing, longevity, and family variables.

You don’t need to guess better.

You need to make the scenarios compete.

Don’t Let One High-Income Year Scare You Away From the Whole Strategy

Maybe next year is terrible for a large conversion.

Fine.

That doesn’t mean the entire Roth strategy is dead.

Maybe the following year works better.

Maybe smaller conversions work.

Maybe a variable strategy works.

A bad conversion year isn’t the same thing as a bad Roth conversion plan.

And Don’t Assume Retirement Automatically Creates a Roth Window

This is the opposite mistake.

You retire Friday.

Monday you call and say:

“Okay, now I want to convert $300,000.”

Before doing that, I want to see:

• Your final W-2 expectations
• Bonus schedule
• Deferred compensation schedule
• RSU schedule
• Stock option activity when applicable
• Pension income
• Social Security
• Investment income
• Expected capital gains

Then we can talk about the conversion.

Should You Exercise Stock Options Before a Roth Conversion?

Stock options introduce another set of tax rules.

The tax treatment can differ based on the type of option, when it is exercised, the value of the stock, and when the stock is sold.

If a significant stock-option event is expected, coordinate it with your tax professional before selecting the Roth conversion amount.

A large equity-compensation event and a large Roth conversion can collide in the same year.

What About Selling Company Stock?

Now capital gains and potentially other special employer-stock rules can enter the analysis.

If you own a concentrated position in company stock, don’t treat the sale decision and Roth conversion as unrelated.

A large stock sale may change the tax picture for the year.

The Roth conversion amount may need to respond.

Could Variable Roth Conversions Work Better for Executives?

This is one of the strategies I’d want to test.

Instead of saying:

“Convert $200,000 every year for five years.”

maybe you convert:

• $50,000 in a large deferred-comp year
• $175,000 in a lighter compensation year
• $75,000 during a large RSU year
• $225,000 after deferred compensation declines

Those numbers are only examples.

The idea is what matters.

Your conversion schedule can respond to your income schedule.

How Can Roth Conversion Taxes Be Addressed?

Executives often have more than one potential source for addressing conversion taxes.

Option 1: Cash

Cash may provide a straightforward source for addressing the tax cost while allowing more of the selected conversion amount to reach or remain in the Roth.

But don’t drain liquidity that has another job in retirement.

Option 2: Taxable Investments

Taxable investments may also provide liquidity.

But selling appreciated assets can create capital gains.

Now the sale and conversion can interact on the same tax return.

Model both.

Option 3: Retirement Assets or Withholding

Another approach may involve retirement assets or withholding.

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

Tax withholding and estimated tax requirements should be coordinated 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 does not 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.

This Is Where Roth Blueprint Software Comes In

An executive approaching retirement may have more predictable future income events than the average retiree.

That’s useful.

If you already know your deferred compensation schedule, pension date, Social Security plan, and expected equity events, we can put those assumptions into the analysis.

Using our Roth Blueprint software, we can assess thousands of potential modeled Roth conversion scenarios around those income events.

What Can We Compare?

We can assess different:

• Retirement dates
• Salary years
• Deferred compensation schedules
• Expected RSU or stock-compensation income
• Conversion amounts
• Conversion years
• Variable annual conversions
• Multi-year conversions
• No conversion
• Projected conversion taxes
• Traditional retirement balances
• Roth balances
• Taxable investments
• Cash reserves
• Capital gains
• Pension income
• Social Security timing
• Potential Medicare considerations
• Projected RMDs
• Retirement income
• Surviving-spouse outcomes
• Beneficiary outcomes
• Legacy outcomes

Example: Build the Executive Retirement Income Map

Suppose you’re 60.

You have:

• $2.4 million traditional 401(k) and IRA
• $450,000 Roth assets
• $1.2 million taxable investments
• $500,000 cash

Your expected income timeline looks roughly like this:

Age 60: Full salary, bonus, RSUs.

Age 61: Partial salary, bonus, RSUs.

Age 62: Deferred compensation, RSUs.

Age 63: Deferred compensation.

Age 64: Smaller deferred compensation payment.

Age 65: Deferred compensation ends.

Age 67: Social Security planned.

Now we can compare:

Scenario A: No Roth conversion.

Scenario B: Start conversions immediately.

Scenario C: Smaller conversions while deferred compensation is being paid.

Scenario D: Larger conversions after deferred compensation declines.

Scenario E: Variable conversions each year based on the entire income picture.

Then compare the projected results.

Don’t Judge the Strategy by One Year’s Tax Bill

Maybe Scenario E pays more tax in one particular year.

That doesn’t automatically make it worse.

We need to see what happens to:

• Future traditional IRA balances
• Future Roth balances
• Projected RMDs
• Retirement income
• Liquidity
• Surviving-spouse outcomes
• Beneficiary outcomes

The winning strategy isn’t necessarily the one with the smallest tax bill next April.

The Retirement Math Method™

This is why we use our Retirement Math Method™.

I don’t start with:

“Wait until the deferred compensation ends.”

I don’t start with:

“Convert everything before retirement.”

Those are opinions.

Instead, we make the strategies compete.

Maybe converting before the deferred compensation arrives wins.

Maybe smaller conversions during the payout years win.

Maybe waiting for the compensation to decline wins.

Maybe variable conversions win.

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 Roth Conversions and Deferred Compensation

Can I do a Roth conversion while receiving deferred compensation?

Yes, receiving deferred compensation doesn’t by itself prevent a Roth conversion. The taxable income associated with both needs to be evaluated together when choosing the conversion amount.

Should I convert before my deferred compensation begins?

Potentially. A year before substantial deferred compensation arrives may have a different tax profile, but current salary, bonuses, equity compensation, retirement timing, and future income should all be compared.

Should I wait until my deferred compensation ends?

Not automatically. If deferred compensation will continue for many years, waiting could also mean allowing a large traditional retirement account to continue growing while other retirement income sources eventually begin.

Can RSUs affect my Roth conversion?

Yes. RSUs can create compensation income under applicable tax rules, so expected vesting and settlement events should be considered when choosing Roth conversion years and amounts.

What if my RSUs vest after I retire?

Post-retirement vesting or settlement can still create income under the applicable award and tax rules. Include expected equity compensation on your post-retirement income timeline rather than assuming income disappears when salary stops.

What if I receive a large final bonus after retiring?

A final bonus or other compensation payment can materially change the income picture for the year. Include it before selecting the Roth conversion amount.

Can I convert my IRA if my income is high?

Current federal rules don’t impose an income limit that prevents an otherwise eligible traditional IRA-to-Roth conversion simply because your income is high. High income can still materially affect the tax cost and broader planning result.

Could I do smaller Roth conversions during deferred-compensation years?

Yes. Smaller or variable conversions can be modeled against waiting, larger conversions, and no conversion to determine which approach produces the stronger projected result.

Should I coordinate my stock sale with my Roth conversion?

Yes. A significant company-stock sale can create capital gains or other tax consequences. The stock transaction and Roth conversion should be evaluated as parts of the same annual tax picture.

Can Roth Blueprint account for my deferred compensation schedule?

Our Roth Blueprint process can assess thousands of potential modeled Roth conversion scenarios using assumptions for salary, deferred compensation, stock compensation, retirement timing, taxable investments, pension income, Social Security, potential Medicare considerations, future RMDs, liquidity, surviving-spouse outcomes, beneficiary outcomes, and no conversion.

Your Last Paycheck Isn’t Necessarily the Beginning of Your Roth Conversion Window

This is the main point.

Executives often have income that follows them into retirement.

Your job ends.

Your salary stops.

But the financial consequences of your compensation package may continue for years.

That’s not necessarily bad.

You earned the money.

But if you also have $1 million, $2 million, $3 million, or more in tax-deferred retirement accounts, you need to know how those income streams fit together.

Don’t choose your Roth conversion years from your retirement date alone.

Choose them from the entire income timeline.

Retiring With $500,000+ in Tax-Deferred Assets and Deferred Compensation? Let’s Run the Math.

If you’re approaching retirement with $500,000, $750,000, $1 million, $2 million, $3 million, or more in traditional IRAs, 401(k)s, or other tax-deferred retirement accounts and you also expect deferred compensation, RSUs, stock compensation, bonuses, or other post-employment income, don’t assume retirement automatically creates a low-income Roth conversion window.

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:

• No Roth conversion
• Conversions before retirement
• Conversions during deferred-compensation years
• Conversions after deferred compensation declines
• Smaller annual conversions
• Larger annual conversions
• Variable annual conversions
• Multi-year conversions
• Salary and bonus income
• Deferred compensation
• Expected equity compensation
• Projected conversion taxes
• Capital gains
• Taxable investments
• Cash reserves
• Pension income
• Social Security timing
• Potential healthcare-related income considerations
• Projected traditional balances
• Projected Roth balances
• Projected RMDs
• Retirement income
• Surviving-spouse outcomes
• Beneficiary outcomes
• Legacy outcomes

Then we put the strategies side by side.

Maybe converting before your deferred compensation begins produces the stronger modeled result.

Maybe smaller conversions during the payout years win.

Maybe the best window doesn’t appear until several years after you retire.

Maybe variable conversions that follow your compensation schedule produce the strongest result.

Maybe doing nothing wins.

You’ve already spent your career building the assets.

Now the job is figuring out how all of those income sources should work together.

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, insurance, compensation, employment, securities, estate-planning, Medicare, Social Security, or retirement-planning advice. FPP Financial does not provide tax or legal advice. Deferred compensation arrangements, restricted stock units, restricted stock, stock options, employee stock plans, severance arrangements, bonuses, pensions, and other compensation programs can be governed by complex federal and state tax rules, securities rules, employment agreements, plan documents, vesting requirements, payment elections, forfeiture provisions, and other restrictions. Nonqualified deferred compensation arrangements can be subject to Internal Revenue Code Section 409A and other applicable provisions. The timing and tax treatment of deferred compensation depend on the specific arrangement and individual circumstances. RSUs generally represent an unfunded promise to transfer stock or cash in the future and can create compensation income under applicable rules when relevant vesting, settlement, payment, or transfer requirements are satisfied. Restricted stock, RSUs, incentive stock options, nonstatutory stock options, employee stock purchase plans, and other equity awards can have materially different tax treatment and shouldn’t be treated as interchangeable. Roth conversions generally create taxable income to the extent converted amounts would otherwise be taxable. Current federal rules don’t impose an adjusted-gross-income limit that prevents an otherwise eligible Roth conversion solely because the taxpayer has high income. Qualified Roth IRA distributions are generally tax-free under current federal rules when applicable requirements are satisfied. Taxable Roth conversion income, deferred compensation, stock compensation, salary, bonuses, pension income, retirement distributions, capital gains, 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, compensation, 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, compensation income, vesting, settlement, 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, making or changing a deferred-compensation election, exercising stock options, selling company stock, taking a retirement-plan distribution, making decisions involving RSUs or other equity compensation, making estimated tax payments, purchasing an insurance or annuity product, or making other retirement decisions, consider working with qualified tax, legal, accounting, financial, investment, compensation, securities, insurance, Medicare, Social Security, estate-planning, and other appropriate professionals who can evaluate your specific compensation agreements, plan documents, current law, and individual circumstances.