Plan Strategic Roth IRA Conversions
Convert traditional retirement accounts to Roth at the right time to minimize lifetime taxes. See the tax impact now and the tax-free growth for decades to come.
Start Your Free TrialWhat Is a Roth Conversion?
A Roth conversion moves money from a traditional IRA or 401(k) to a Roth IRA. You pay taxes now on the converted amount, but all future growth and withdrawals are tax-free.
- Pay taxes now at today's rates, enjoy tax-free growth forever
- Eliminate Required Minimum Distributions (RMDs) on converted amounts
- Leave tax-free inheritance to your heirs
- Protect against future tax rate increases
When Should You Convert?
The best time to convert is when you're in a lower tax bracket than you expect to be in the future. Common optimal windows include:
- Early retirement: After you stop working but before Social Security and RMDs start
- Gap years: Between retirement and age 72/73 when RMDs begin
- Market downturns: Convert shares at lower values, pay less tax, benefit from recovery
- Low income years: Sabbatical, career change, or any year with reduced income
Why Strategic Conversions Matter
Random conversions can actually cost you money. Strategic, planned conversions based on your complete financial picture maximize the benefit.
- Reduce future RMDs: Money in Roth accounts has no required distributions at any age
- Tax diversification: Have both tax-free and tax-deferred buckets to draw from in retirement
- Hedge against tax increases: Lock in today's tax rates before potential future increases
- Estate planning: Leave tax-free money to beneficiaries who may be in high tax brackets
Frequently Asked Questions
Should I do a Roth conversion?
It depends on your current vs. future tax rates, time until retirement, and estate planning goals. Conversions generally make sense if you expect to be in an equal or higher tax bracket in retirement. Our planner models your specific situation.
How much should I convert each year?
The goal is to "fill up" lower tax brackets without pushing yourself into a much higher one. Our planner shows you the optimal amount based on your income, deductions, and tax bracket thresholds.
Do I pay taxes on the conversion?
Yes, the converted amount is added to your taxable income for the year. That's why timing matters so much. Converting in a low-income year means paying less tax on the same dollars.
Can I convert my 401(k) to Roth?
If you're still employed, some 401(k) plans allow in-plan Roth conversions. Otherwise, you can roll over to a traditional IRA first, then convert to Roth. Our planner works with all account types.
Plan Your Roth Conversion Strategy
See exactly when and how much to convert for maximum tax savings.
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