What a Roth conversion does
When you convert, you move all or part of a traditional IRA into a Roth IRA. A conversion generally results in tax on any amounts in the traditional IRA that were not taxed before, and it is reported on Form 8606 (IRS, 2026). If part of the account was already taxed, such as nondeductible contributions, only the untaxed part is generally taxed.
In return, qualified distributions from a Roth IRA are tax-free if you meet the requirements, and the owner is not required to take withdrawals while alive (IRS, 2026). That is the potential benefit. The cost is a real tax bill now, and conversions are not right for everyone. Results depend on your income, your tax bracket today and later, and how long the money stays invested.
Why the years before Social Security or RMDs get a look
Many people have a stretch after work ends, and before Social Security or required minimum distributions begin, when taxable income is lower than it was while working or than it may be later. Required minimum distributions from pre-tax accounts generally begin at age 73 under current IRS guidance, and the starting age can depend on when you were born (IRS, 2026).
A lower-income year may be a time to look at converting some money, because the same conversion could cost more in a higher-income year. That is a question to test with your own numbers, not a rule. Your income may not dip at all, and for some households waiting is the better choice.
Questions to ask before you convert
Where will the tax money come from? Paying the tax from savings outside the account keeps more of the converted money working in the Roth. Paying it out of the converted amount leaves less in the Roth, and a withdrawal before age 59½ can bring an additional tax.
What will it do to Medicare premiums? Conversion income counts toward the income Medicare looks at, and that income is usually read from two years back, so a conversion this year may show up in your premiums later. We explain how that works in our IRMAA answer.
What does your state do? Your state may tax the converted amount too, and the rules differ from state to state.
How do the timing rules apply? A conversion made in 2018 or later cannot be undone (IRS, 2026). If you are under 59½ and withdraw converted money within five years, the taxable part may face an additional 10% tax unless an exception applies (IRS Publication 590-B, 2025). A separate five-year rule affects whether earnings can come out tax-free. Check the details on irs.gov before you act.
How the plan looks at this
Roth Conversion Analysis is part of Signature Retirement. We look at your projected income across the years ahead and identify the years where a conversion may be worth considering, alongside your Medicare premiums and other tax decisions. With Signature Retirement Continuum, we implement it year by year as part of your ongoing tax planning. Both are described on our Financial Planning page.
This is analysis, not a promise. Tax-aware planning may involve trade-offs, rules change, and results vary with each person's situation. If you are not sure where you stand, the Retirement Picture Check is a ten-question place to start.
Where these rules come from
IRS, "Retirement plans FAQs regarding IRAs" (irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras). IRS, "Roth IRAs" (irs.gov/retirement-plans/roth-iras). IRS, "Retirement topics: Required minimum distributions (RMDs)" (irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds). IRS, "Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)" (irs.gov/publications/p590b). All were read on October 29, 2026. Tax rules and limits change, so check the current ones before you rely on them.
Written by the team at The Retirement Life, led by Rc Arseneau, CFP®. This is education, not individualized advice. Your situation deserves a real conversation before any decision.