Roth Conversion

The IRS Already Knows What It's Owed. The Question Is When You Pay It.

Every dollar in a traditional IRA or 401(k) is tax-deferred, not tax-free — the IRS gets its share eventually, whether you want the income that year or not. Required Minimum Distributions force the issue starting at 73. Here's how people get ahead of it instead of being forced into it.

The Part That Sneaks Up On People

RMDs Don't Ask If You Need the Money

Once you turn 73, the IRS requires you to withdraw a minimum amount from traditional retirement accounts every year — whether you need the income or not. That forced withdrawal is taxable, and it can push you into a higher bracket, increase your Medicare premiums (IRMAA), and shrink what's left for your family.

It gets worse the bigger your accounts get. The more your IRA or 401(k) grows, the bigger your eventual RMD — and the bigger the tax bill and IRMAA surcharge that comes with it. Growth you worked for compounds your future tax bill right alongside your balance.

A Roth conversion breaks that cycle. Instead of waiting for the IRS to force a withdrawal on its schedule, you convert on your terms — ideally in a year when your bracket is lower than it likely will be later — and from that point on, that money is done being taxed. Forever.

How It Works

Pay the Tax Once. Never Again.

A Roth conversion moves money from a traditional IRA or 401(k) into a Roth IRA — on your schedule, not the IRS's.

Convert a Portion

Move some or all of a traditional IRA or 401(k) into a Roth IRA. No income limit, no dollar cap.

Pay Tax This Year

The converted amount is taxed once, as ordinary income, in the year you convert — at today's known rate.

Grow Tax-Free, Forever

From that point on, growth and qualified withdrawals are tax-free — for you and for whoever inherits it.

The Strategy

Roth Conversion

Pay the tax once. Never again.

A Roth conversion moves money from a traditional IRA or 401(k) into a Roth IRA. You pay ordinary income tax once, today, at a known rate — and from then on it grows and comes out completely tax-free, for you and for whoever inherits it.

When RMDs Begin

That's the deadline this decision runs against. Once RMDs start, the IRS is making your withdrawal decisions for you.

Highlights

No income limit — unlike direct Roth contributions, anyone can convert
No dollar cap — convert any amount, in one year or spread across several
Taxed once — at conversion, not again on growth or qualified withdrawals
No RMDs, ever — Roth IRAs don't force withdrawals during your lifetime
Tax-free inheritance — whoever inherits it gets it tax-free too

Your lowest tax bracket won't last forever.

That window is often right now — between paychecks stopping and RMDs starting at 73. Once it closes, it's closed. The right amount to convert, and when, depends on your bracket and whether you have outside cash to cover the tax — worth confirming with a tax professional and on a call with us.

Straight Answers

Quick Facts

No Income Limit

Unlike direct Roth contributions, anyone can convert, regardless of income.

No Dollar Cap

Convert any amount, in one year or spread across several to manage your bracket.

RMDs Begin at 73

Required Minimum Distributions force withdrawals from traditional IRAs; Roth IRAs don't have them.

Taxed Once

At conversion — never again on growth or qualified withdrawals.

Curious What Your Number Actually Looks Like?

Take our free risk assessment — a couple of minutes to see where you stand, then we'll look at your specific accounts, your bracket, and whether converting now makes sense.

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