Retirement & Taxes · Roth Conversions
What is a Roth conversion, and when does it make sense?
A Roth conversion moves money from a traditional IRA or 401(k) into a Roth account — you pay income tax on the amount now so it can grow and be withdrawn tax-free later. Done in the right years, it may lower your lifetime taxes. The timing and amount depend heavily on your situation.
Retirement & Taxes · Roth Conversions
What is a Roth conversion, and when does it make sense?
A Roth conversion moves money from a traditional IRA or 401(k) into a Roth account — you pay income tax on the amount now so it can grow and be withdrawn tax-free later. Done in the right years, it may lower your lifetime taxes. The timing and amount depend heavily on your situation.
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How it works
You move money from a pre-tax account into a Roth account and pay income tax on the amount you move in the year you move it. From there, growth and qualified withdrawals are generally tax-free. Roth accounts also don't carry required minimum distributions the way pre-tax accounts do, so the money can sit longer if you don't need it.
Why timing matters
A conversion adds to your taxable income for that year, so the year you choose matters as much as the amount. People often look at lower-income years — for example after retiring but before required distributions begin — and many spread conversions across several years rather than doing one large one, to avoid pushing income higher than they intended.
The broader tax picture is covered on tax planning in retirement, and how conversions fit a paycheck plan is on retirement income.
The Medicare connection
This is the part people miss. A large conversion raises your income for that year, which may raise your Medicare Part B and Part D premiums — the income-related adjustment known as IRMAA — generally about two years later. That's usually worth planning around rather than discovering after the fact.
If you're new to how the parts and premiums fit together, start at the Medicare hub. Medicare figures and thresholds are typically updated each year, so confirm current details for your situation.
General education, not advice
This is general education — for your situation, our team can point you to the right licensed professional. Nothing here is investment or tax advice.
Common Questions
Questions we hear most
What is a Roth conversion?
Moving money from a traditional (pre-tax) retirement account into a Roth account. You pay income tax on the converted amount now, and qualified withdrawals later are generally tax-free.
Will a Roth conversion affect my Medicare premiums?
It can. A conversion raises your taxable income for that year, which may increase your Medicare Part B and Part D premiums (IRMAA) roughly two years later. Planning the timing and size can help manage that.
When is the best time to do a Roth conversion?
It depends. Many people look at lower-income years — often after retiring but before required distributions and Medicare start — but the right call is personal. A tax professional can run your numbers.
Thinking about a conversion? Let's talk it through.
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professional to run the numbers for your years. Any fees are
discussed with you upfront by that professional.
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Takes 2 minutes
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