Episode summary
How to Beat the “Fire Hydrant” of Future Taxes: YMYW Best of 2025
Your Money Your Wealth
· · 1 hr 3 min · Hosts: Joe Anderson, Big Al Clopine · Guests: Susan Brandeis, Ed Slott
Summary
The episode revisits the show’s most popular 2025 tax and retirement discussions, centered on Roth conversions, future tax rates, and the 10-year inherited IRA rule. The host and Big Al argue that Roth IRAs remain powerful because they lock in today’s tax rate, while traditional IRA and 401(k) balances are vulnerable to future tax increases and forced distributions. Ed Slott adds that Congress tends to favor Roths because the government gets revenue up front, but that tax-deferred accounts are still likely targets when deficits worsen.
A recurring theme is that Roth conversions are not automatically right in every year. The host and Big Al say the decision depends on the client’s bracket, cash flow, Social Security, Medicare premiums, capital gains harvesting, and whether the conversion would trigger other taxes or lost deductions. They caution that software can help, but only as a snapshot; the real answer changes as tax brackets, market returns, and personal circumstances change.
The episode also says inherited traditional IRAs are far less attractive under Secure Act rules, because most beneficiaries now must empty them within 10 years and can face a “fire hydrant” of taxable income. For clients who want post-death control, they argue that Roth conversions and, in some cases, permanent cash-value life insurance can be better tools than leaving a large IRA in trust.
Key takeaways
- Ed Slott says Roth IRAs are attractive because they let money grow income-tax-free and Congress prefers up-front revenue from conversions.
- The host argues that tax-deferred IRA and 401(k) balances are “sitting ducks” for future tax increases and required distributions.
- For a 67-year-old with $3.5 million in retirement accounts, Big Al says the right Roth-conversion answer depends on bracket, spending, and other income sources, not software alone.
- The host and Big Al say the 0% capital-gains bracket can compete with Roth conversions, so some investors may need to choose one strategy in a given year.
- For heirs, the episode says the Secure Act’s 10-year rule makes inherited traditional IRAs much less useful, while Roths avoid taxable distributions during that period.
Notable quotes
“Roth IRA is a miracle. It's the greatest account ever created because everything it is, there's no question”
“Always pay taxes at the lowest rates”
“I think tax deferred accounts, IAS, 401ks are a sitting ducks for future tax increases”
“So now they've closed the window. they pushed in the window when all this buildup in tax deferred IAS and 401ks have to come out and it's going to come out like a fire hydrant”
How the episode opens
Y myw friends, welcome to 2026. Today on your money, your wealth podcast number 563, we're revisiting your favorite topics of 2025 as join Big Al spitball on when not to do Roth conversions, Roth conversions versus 0% capital gains tax rates and how much is enough for retirement. Plus, Al talks social security, pensions, and Roths with a couple of special guests.
I'm executive producer Andy Lass with the hosts of Your Money, Your Wealth, Joey Anderson, CFP, and Big Al Copeline CPA. We'll kick off the best of 2025 with the single YMYW episode that was the most downloaded all year across all podcast platforms, as well as having the most listeners and the most plays all year in Apple Podcasts. Big Al dishing on why Roth IAS are the greatest account ever with the Roth IRA guru Ed Slot, CPA.
You know, we were just talking about how when we have a tax issue, we're much more likely to go to your website than the IRS website because your answers are written in English, clear and concise, understandable. And the IRS is not quite so much that way.
Well, they're rigid. They have to stick to the, you know, this is code section 40189 and this and that and it's regs and this. And some people just want to know, can I do this or not? — Right. Right. Yeah. So, let's talk about you and I have talked about Roth IAS, Roth conversions. I know you're very big proponent in that, but let's talk about let's talk about what they are, what what a Roth IRA is, and why why do people want to get money in the Roth?
Roth IRA is a miracle. It's the greatest account ever created because everything it is, there's no question.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- future taxes
- roth conversions
- roth ira mistakes
- social security claiming
- retirement planning
Companies and tickers mentioned
- Pure Financial Advisors, LLC
Watch the episode
Watch “How to Beat the “Fire Hydrant” of Future Taxes: YMYW Best of 2025” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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