Roth Conversion Strategies

A Roth conversion involves moving assets from a traditional IRA or pre-tax 401(k) to a Roth IRA, triggering ordinary income tax on the converted amount in the year of conversion. In exchange, future qualified distributions from the Roth account are tax-free.

Conversions are most often considered during years when taxable income is lower than usual — for example, the gap between retirement and required minimum distributions beginning at age 73, or a year with significant deductions. Relevant factors include current vs. projected future tax rates, RMD exposure in later years, estate planning goals, and available funds to pay the conversion tax outside the retirement account.

For educational purposes. Tax laws are subject to change. Individual circumstances vary. Consult a qualified tax adviser before making conversion decisions.