Planning for retirement often raises important questions about managing your finances wisely, reducing your tax burden, protecting your wealth, and making the right decisions for you and your family’s future.

Join Joel Johnson, CFP® on this week’s Retire Wiser with NBC Connecticut as he answers key retirement planning questions sent in by our viewers.

“What Do I Need to Know About Roth Conversions?” – Dave

Converting money from a traditional IRA to a Roth IRA can be a smart move for many pre-retirees, especially since Roth accounts offer tax-free growth and withdrawals. Whether a Roth conversion is the right decision for you depends partly on your current versus future tax situation: will your tax rate be lower now or later?

When you transfer money to a Roth, you’ll owe taxes on that conversion, so it’s important to work with a tax planner to estimate that liability. It’s also worth considering when you’ll need the money, as Roth conversions require a five-year waiting period before withdrawals can be made without penalty.

“How Can I Lower Taxes on Inherited IRA RMDs?” – Harry

The rules around inherited IRAs have changed in recent years. Under the SECURE Act, most non-spouse beneficiaries must empty an inherited IRA within 10 years of the original owner’s death. If the original owner was already taking required minimum distributions (RMDs), the beneficiary must continue taking them during that 10-year period.

Since RMDs are taxed as ordinary income, they can push you into a higher tax bracket. Instead of taking a lump-sum withdrawal, consider spreading distributions evenly over the 10 years to help manage your tax burden more effectively.

“What is the Most Affordable Long-Term Care Option?” – Albert

There’s no single most affordable long-term care option — what’s best for you depends on your unique financial situation. As you plan for this potential healthcare cost, there are several coverage options to consider, including traditional insurance, hybrid insurance, self-insurance, and irrevocable trusts. Choosing the right approach depends entirely on your individual circumstances and can be determined with the guidance of a financial professional.