What Is a Roth Conversion?
A Roth conversion moves money from a tax-deferred account (Traditional IRA, 401(k)) into a Roth IRA. You pay income tax on the converted amount now, but all future growth and withdrawals are tax-free. This strategy is especially powerful if you expect to be in a higher tax bracket later.
2026 Federal Tax Brackets (Single Filer)
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 – $11,925 |
| 12% | $11,926 – $48,475 |
| 22% | $48,476 – $103,350 |
| 24% | $103,351 – $197,300 |
| 32% | $197,301 – $250,525 |
| 35% | $250,526 – $626,350 |
| 37% | Over $626,350 |
Roth Conversion Ladder Strategy
A Roth conversion ladder converts small amounts each year to "fill up" lower tax brackets, rather than converting everything at once. The goal is to:
- Reduce future RMDs (and the taxes they generate)
- Pay taxes at lower rates now vs. higher rates later
- Create a pool of tax-free money for flexible withdrawals in retirement
- Reduce the taxable estate for heirs
Optimal window: The years between retirement and starting RMDs/Social Security (typically ages 55-72) are often the best time for conversions, when income is lower.
Related Calculators & Guides
- RMD Calculator — See how conversions reduce future RMDs
- 401(k) Calculator — Project your 401(k) balance
- Roth Conversion Strategy for High Income Earners
- Roth vs Traditional IRA Comparison
- All Retirement Calculators