Jill on Money with Jill Schlesinger

Episode: Roth vs. Traditional
Date: May 1, 2026
Host: Jill Schlesinger (with Mark Talercio, Executive Producer)
Guest/Caller: K from California

Episode Overview

In this episode, Jill takes a listener call from "K from California," who seeks clarity on whether to prioritize Roth or Traditional (pre-tax) retirement contributions, given her salary, expected pension, and evolving career. The discussion unpacks the nuances of the Roth vs. Traditional debate, demonstrating, through K's circumstances, that optimal retirement savings strategies are highly individualized. Jill and Mark provide actionable feedback and underscore the unique impact of a significant pension on long-term planning.

Key Discussion Points & Insights

1. Setting the Stage: Listener's Situation

K's Profile:
- Age: 50
- Single, no children, one dog
- Lives in California (high state tax)
- Earnings: ~$225k/year; possible future raises or new job could increase income further
- Homeowner: House valued at ~$520k, mortgage balance $166k at 2.75% rate
- Substantial state pension (potentially over $150k/year in retirement)
- Retirement Accounts: Maxing out 403(b) (Traditional), contributing importantly to 457 (now Roth)
- Savings: $70k high-yield savings, $16k brokerage
- No Roth IRAs or previous employer retirement plans
- Up-to-date estate documents
K's Primary Question:
She’s always heard about the benefits of Roth accounts but contributes to a pre-tax account to lower her AGI. She wants to know whether to keep doing this—especially with a pension and expected career growth.

“I hear you all talk about Roth all the time… I'm still making contributions in my pre-tax account to help bring down my AGI.”
(K from California, 04:07)

2. Roth vs. Traditional: Custom Solutions, Not Absolutes

Jill’s Principle:
The 'right' answer is situational:

“There are always different ways to get where you want to go… It does not matter in your case…”
(Jill, 12:00, 11:12)
Tax Bracket Considerations:
K uses pre-tax contributions to stay in a favorable tax bracket, but future promotions could push her higher. State taxes are a concern in California, but K may someday move to Washington state (no state income tax), which would make pretax even more appealing upon retirement.
The Pension Game-Changer:
Jill emphasizes that a robust pension like K’s fundamentally changes retirement calculations.

“That pension is totally the game changer. It is amazing... it's as if you have saved millions of dollars throughout your last 23 years working.”
(Jill, 15:48, 17:32)

3. Contribution Allocations: Roth, Traditional, or Taxable?

Current Approach:
- 403(b) maxed pre-tax, 457 contributions now shifted to Roth
- Modest brokerage account started
Mark on Flexibility:

“There’s no wrong move... The pension changes everything.”
(Mark, 11:27, 13:20)
Jill's Guidance:
- Stick with what’s comfortable—there’s no urgent need to optimize further unless K’s situation changes
- If income rises, some extra could go into a brokerage/taxable account for liquidity
- No compelling need to convert aggressively to Roth given projected pension and spending
If Liquidity Needs Change:
- K could reduce retirement plan contributions and build taxable savings
- Not necessary unless specific goals arise (e.g., moving, buying another property)

4. Inheritance and Legacy

K has siblings and a parent (who is also financially secure); possible future consideration for nieces/nephews
Mark's note:

“If it's really important for, you know, nieces and nephews to get some sort of inheritance... the Roth is the best thing to inherit.”
(Mark, 16:18)
Jill (pragmatic response):

“Big deal. Then let them pay the tax on it.”
(Jill, 16:27)

5. Notable Quotes & Memorable Moments

Jill & Mark’s “No Wrong Move” Philosophy

“It's one of those things where people say to me, oh, all Roth, all the time. Yes, except in some cases, and yours is a case where it just does not matter.”
(Jill, 15:57)

On the yet-unmatched pension

“This may be the best one we've had yet.”
(Mark, 08:21)

The value of the pension

“You have a pension that has a present value in the millions. It is, it's as if you have saved millions of dollars throughout your last 23 years working.”
(Jill, 17:32)

A moment of pension envy

Jill: “Mark, how's your pension looking? What's the expected income? Is it still zero a month?”
Mark: “No, I think it's like 168 a month, to be honest.”
(18:39–18:41)

6. Actionable Takeaways

Roth vs. Traditional is not one-size-fits-all—large pensions tip the scales and lessen the impact of tax deferral choices
K has immense flexibility and should feel validated in prioritizing both her comfort and lifestyle now, instead of worrying about theoretical future tax scenarios
If future circumstances change (income, job, real estate), revisit the plan, but no drastic shifts needed for now
Consider brokerage account for extra liquidity, but not essential in this pension-rich scenario
Keep estate planning documents current, which K has already done
For listeners, “Roth all the time” is a common refrain, but personal situation—especially with significant guaranteed retirement income—demands a nuanced approach

Timestamps for Key Segments

K’s background, income, and housing: 04:04–07:41
Pension details and implications: 08:14–10:46
Spending and savings summary: 11:03–11:12
Roth vs. Traditional analysis for K: 11:12–17:32
Legacy and inheritance discussion: 16:18–16:39
If/when to revisit the plan: 17:02–17:32
Jill’s core Roth/Traditional message recap: 18:47–19:35
Pension envy banter: 18:39–18:47

Tone

Jill’s hallmark style shines through: direct, encouraging, and practical, with moments of warmth and levity.

Summary Statement

This episode illustrates how personal context, particularly a significant pension, can override the standard Roth-vs-Traditional debate. Jill and Mark reassure K—and similar listeners—that in rare cases, “there’s no wrong move,” and that financial peace of mind matters as much as perfect optimization.

For more episodes or to ask your own question, visit jillonmoney.com.

Transcript

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Jill (2:02)

Welcome to the Jill on Money Show. It's Friday, May 1st and we are here trying to help you navigate your financial journey. Sometimes I've said that Mark and I are like ways for your financial life. You're in one place you want to get to the next place you want to know what are the different routes to get there. Let me talk to Jill and Mark. They're certified financial planners. They're not selling stuff except for their subscription service and maybe a book here and there. But we'll do that for you. We Will give you the different routes. Sometimes in your life you say, I don't care if it takes me longer to get there, I want the prettier route. Other times you're like, oh, no, I want to get there as quickly as possible. And it could be all highway, super highway. In fact, whatever's going on for you, Mark and I would love to lay out the options. There are always different ways to get where you want to go. Oh, by the way, you know what we don't talk about? What? What got you like where you were five years ago. It does not matter. You are where you are right now. We're getting you where you want to go next. No reason to go back and start, you know, saying, oh, I should have done this or should have done that. Doesn't matter. Wherever you are now is important and where you'd like to go. Our job is to help you figure out what's available and how you can get there. You like the sound of that? Go to our website, jillonmoney.com. click the Contact Us button. Write us a note if you'd like to come on the air live. Check the box. Mark will do everything else. And don't forget, while you're on the website, subscribe to our free weekly newsletter. It comes out today, Friday. It will also entitle you to our blog, which I usually pop out there. I don't know, like by Monday. Ish. Although, Mark, I don't know if I'm going to hold to that schedule. Maybe I'll do Tuesdays in the future. We'll see. And you could check out my book, the great Money, Reset Resources videos. Lots of stuff there. Right on the jillonmoney.com website. Today we are joined by K from California. So I feel like it should be like a K from California with a K. But no, it's just K from California. Hi, Kay, how are you?