Your Money

As interest rates stabilize and tax law continues to shift, Roth conversions are getting a lot of attention again. The idea is simple: move pre-tax dollars into a Roth and trade today’s tax bill for decades of tax-free growth. The catch is that the tax bill can be much bigger than people expect. Required distributions, Social Security taxation, Medicare brackets, and other income sources can all stack together in ways that turn a well-intentioned move into an expensive surprise.

A Roth conversion can absolutely make sense for the right family, but it works best when the math is done before you convert. A thoughtful multiyear plan can save thousands. Guessing can do the opposite. It is far better to understand the tax hit on the front end and fine-tune the strategy than deal with the aftermath once the damage is already done.

If you are thinking about a conversion, let PWM run the numbers with you before you pull the trigger.

Roth conversions could trigger a ‘tax torpedo’ under Trump’s ‘big beautiful bill’
by Kate Dore

Your Life

Many people skip their annual wellness visit because they feel fine, but the truth is this: among community-based Medicare beneficiaries, only about 60% had an Annual Wellness Visit in 2022, according to the Centers for Medicare & Medicaid Services. These visits are designed to catch small issues before they become big ones and to track long-term trends like blood pressure, cholesterol, and cognitive changes. If it has been more than a year since your last checkup, now is a good time to get it on the calendar.

Get Your Medicare Wellness Visit Every Year
source: MyHealthfinder (health.gov)

Complexity Simplified

Old 401(k) accounts have a way of piling up as careers evolve, and many people do not realize how much money gets left behind. The average forgotten plan holds more than $55,000, which means real dollars are sitting outside your main strategy. The good news is that the fix is simple. Rolling old plans into one IRA can clean up your accounts, reduce fees, and give you a clearer view of your retirement path.

Simply rolling old work plans into a single IRA can turn a messy stack of accounts into a retirement picture you can easily see and manage.

Forgotten 401(k) Accounts Are Costing Americans Billions in Lost Investment Gains
by Anne Tergesen

Trivia