Capstone Investments – Aug 6 2026

By Bryce Pease CFP® Accredited Investment Fiduciary® Casey Morris CFP® Capstone Pacific Investment Strategies, Inc. California, Colorado, Nebraska

You may have noticed Roth conversions being discussed more frequently in the financial news lately. As tax policy, retirement planning strategies and market conditions continue to evolve, this topic has been getting a lot of attention.  The main difference between a traditional IRA and a Roth IRA is when you pay taxes. A traditional IRA uses pre-tax dollars for a tax break now and taxes your withdrawals later, while a Roth IRA uses after-tax dollars now so your future retirement withdrawals are completely tax-free.

A Roth conversion is when you move money from a traditional retirement account (such as a traditional IRA or 401(k)) into a Roth IRA. When you do this, you pay taxes on the amount converted in the year it occurs. After that, the money grows tax-free, and qualified withdrawals in retirement are also tax-free.

The reason Roth conversions are being talked about more right now is largely due to ongoing concerns about future tax rates, retirement income planning, and the desire many investors have for more control over the taxability of their income later in life. In addition, market fluctuations can sometimes create planning opportunities where account values are lower, potentially making conversions more efficient from a tax standpoint.

The main idea behind a Roth conversion is simple: you choose to pay taxes today in exchange for tax-free income in the future. This can also help reduce the size of future required minimum distributions (RMDs) and give you more flexibility in managing your taxable income during retirement.

That said, Roth conversions are not a one-size-fits-all strategy. Converting too much at once can increase your tax bracket and may have ripple effects on other areas of your financial plan, including Medicare premiums and overall tax exposure.

In short, the increased attention around Roth conversions is a reminder to revisit this planning opportunity—not because it’s right for everyone, but because it can be a useful tool when applied thoughtfully and at the right time.

If you’d like to review whether a Roth conversion makes sense for your situation and overall financial plan, we are happy to walk through it with you in detail.

Casey and Bryce

Phone 626-915-7006

capstonepacificinc.com