Why Pre-Retirees in Texas and Arkansas Are Turning to Roth Conversions Before It Is Too Late

Fyffe Financial Partner Corey Hill Breaks Down the Long-Term Tax Benefits of Converting Now

GILMER, Texas, June 30, 2026 /PRNewswire/ -- Tax planning is not something most people associate with retirement preparation. But according to Corey Hill, partner at Fyffe Financial, it is one of the most consequential decisions a pre-retiree will make, and most people are making it by default rather than by design.

"Most people have the bulk of their retirement savings sitting in traditional IRAs or 401(k)s," Hill says. "Every dollar in those accounts will be taxed as ordinary income when they pull it out. A Roth conversion gives you the ability to control when and how much you pay in taxes."

A Roth conversion involves moving money from a traditional IRA or 401(k) into a Roth IRA. The amount converted is taxed in the year of conversion, but all future growth and qualified withdrawals are tax-free. For pre-retirees who are in a lower income bracket than they expect to be later, the window to convert at a lower tax rate is narrow and worth paying attention to.

Hill notes that the years between early retirement and age 73, when required minimum distributions kick in, represent a prime conversion window for many clients.

"Once RMDs start, you lose flexibility," Hill says. "You are forced to take distributions whether you need the money or not. Converting strategically before that point puts you back in control."

Beyond tax savings, Roth accounts carry no required minimum distributions during the account holder's lifetime. They also offer significant benefits for heirs, who inherit assets that grow and distribute tax-free.

Hill cautions that Roth conversions are not the right move for everyone. The strategy requires a careful analysis of current income, expected future tax rates and overall retirement income sources. Converting too much in a single year can push a client into a higher bracket and trigger increased Medicare premiums.

"This is where having a plan matters," Hill says. "A conversion done well saves you money for decades. A conversion done without context creates a tax bill you did not see coming."

Fyffe Financial serves pre-retirees and retirees across Texas and Arkansas with personalized tax-efficient retirement strategies.

Contact:
Sal Velazquez
903-242-8061
[email protected] 

SOURCE Fyffe Financial