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.
Frequently Asked Questions
Can I undo a Roth conversion?
No. Since the Tax Cuts and Jobs Act of 2017, Roth conversions cannot be recharacterized (reversed). Once you convert, you're committed to paying the taxes. This makes careful planning essential.
Should I convert if I'm still working?
It depends on your marginal rate. If you're in the 32%+ bracket while working, converting adds income at that high rate. It's usually better to wait until a lower-income year. However, if you expect even higher rates in retirement (pension + RMDs + SS), partial conversion may still make sense.
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