Roth Conversions

Most coaches spend their careers building wealth in tax-deferred accounts - 403(b)s, 401(k)s, traditional IRAs.

That’s great offense early on.

But eventually, taxes become the defense you have to manage.

That’s where Roth conversions come in.

What Is a Roth Conversion?

A Roth conversion is when you move money from a traditional (pre-tax) account into a Roth account.

• You pay taxes now on the amount converted

• That money then grows tax-free forever

• Withdrawals in retirement are not taxed

• Roth accounts are not subject to RMDs

Think of it as prepaying taxes intentionally, instead of letting the IRS decide later.

Why Roth Conversions Matter for Coaches

Many coaches face a retirement tax trap:

• Pension income

• Social Security

• Required Minimum Distributions (RMDs)

• Side income, camps, or consulting

All of that can push you into higher tax brackets later, even if your salary is lower.

A Roth conversion gives you:

• More control over future taxes

• More flexibility in retirement

• A cleaner estate plan for heirs

Control beats surprises.

Good Times to Consider a Roth Conversion

Roth conversions are most powerful during lower-income years, such as:

• Early retirement before Social Security starts

• A sabbatical, job change, or reduced workload

• Years before Required Minimum Distributions kick in

• Any year where your tax bracket is temporarily lower

These are your “window years.”
Miss them, and conversions often get more expensive later.

Common Roth Conversion Mistakes

❌ Converting too much in one year and jumping tax brackets
❌ Ignoring the impact on ACA health insurance subsidies
❌ Forgetting state taxes
❌ Thinking Roth conversions are “all or nothing”

This is a gradual strategy, not a Hail Mary.

A Simple Coaching Framework

Instead of asking:
“Should I convert everything?”

Ask: How much can I convert this year while staying in a favorable tax bracket?

Small, consistent conversions often win.

That’s disciplined execution.

Who Roth Conversions Are Best For

Roth conversions tend to make sense for coaches who:

• Expect equal or higher tax rates later

• Want tax-free income flexibility

• Don’t need the converted money immediately

• Want to reduce future RMD pressure

• Care about tax-efficient wealth transfer

They’re not mandatory-but they’re powerful.

Final Whistle

Roth conversions aren’t about predicting tax laws.
They’re about controlling what you can control.

✔️ Pay taxes intentionally
✔️ Reduce future uncertainty
✔️ Build tax-free flexibility
✔️ Strengthen your long-term plan

That’s championship defense for your retirement.

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Coach Mike Klinzing
Founder, Wealth4Coaches
"Coach smarter. Save better. Live freer."