Should I do a Roth conversion?
David TalleyUpdated December 15, 2025
Quick Answer
A Roth conversion makes sense when you expect your future tax rate to be higher than your current rate, or when you have a window of lower income (early retirement, gap year). You pay taxes now but get tax-free growth and withdrawals later. The sweet spot is often the years between retirement and age 72 when RMDs begin.
Roth conversions are one of the most powerful tax planning tools available—but they're not right for everyone.
How it works:
Move money from a traditional IRA/401(k) to a Roth IRA. You pay income tax on the conversion now, but the money grows tax-free and withdrawals in retirement are tax-free.
When conversions make sense:
1. You're in a lower tax bracket now than you expect in retirement
2. You're between retirement and RMDs (the "golden window")
3. You have cash outside the IRA to pay the taxes
4. You want to leave tax-free money to heirs
5. You're concerned about future tax rate increases
When to be cautious:
1. You'll need to use IRA money to pay the taxes (undermines the benefit)
2. You're already in a high bracket
3. You plan to be in a lower bracket in retirement
4. You need access to the funds within 5 years (5-year rule applies)
The "golden window" strategy:
Many people have a 5-10 year window between retiring (income drops) and age 72 (RMDs begin and push income back up). This window is ideal for strategic Roth conversions—filling up lower tax brackets each year.
Example:
Married couple retires at 62 with no income. They can convert ~$94,000 annually and stay in the 12% bracket. Over 10 years, they convert $940,000 to tax-free status while paying historically low rates.
The analysis:
This isn't a one-time decision—it's multi-year tax planning. We model scenarios to find the optimal conversion strategy for each client's situation.
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