Topic
Roth Conversion
18 articles
A Roth conversion is when you move money from a traditional retirement account—like a traditional IRA or 401(k)—into a Roth IRA. You pay income tax on the amount you convert in that year, but the money then grows tax-free and you can withdraw it tax-free in retirement. People convert for different reasons: to lock in a lower tax year, to reduce required withdrawals later, or to leave tax-assistance programs to heirs. Understanding how conversions work helps you decide whether one makes sense for your situation.
These articles explain the mechanics of conversions: how much you can convert, what tax bill you'll owe, whether a conversion makes financial sense for you, and how to handle conversions if you have both traditional and Roth accounts. You'll also learn about special situations like the "pro-rata rule" that affects conversions when you have pre-tax money in IRAs, and how conversions interact with Medicare premiums and Social Security taxation.
- 01Converting an Inherited IRA to a Roth: What the Rules AllowLearn about Converting an Inherited IRA to a Roth: What the Rules Allow
- 02Do Roth Conversions Count Toward Your Required Minimum DistributionLearn about Do Roth Conversions Count Toward Your Required Minimum Distribution
- 03Why a Roth Conversion Isn't Counted as a ContributionLearn about Why a Roth Conversion Isn't Counted as a Contribution
- 04Does a Roth Conversion Count Toward Your Required Minimum DistributionLearn about Does a Roth Conversion Count Toward Your Required Minimum Distribution
- 05How the Tax Bill Works When You Convert to a RothLearn about How the Tax Bill Works When You Convert to a Roth
- 06How a Roth Conversion Moves Money From Your Traditional IRA to a RothLearn about How a Roth Conversion Moves Money From Your Traditional IRA to a Roth
- 07How Roth Conversions Are Taxed: What You Owe in the Year You ConvertLearn about How Roth Conversions Are Taxed: What You Owe in the Year You Convert
- 08How the IRS Taxes Your Roth ConversionLearn about How the IRS Taxes Your Roth Conversion
- 09How Many Roth Conversions You Can Do Each YearLearn about How Many Roth Conversions You Can Do Each Year
- 10How the Pro Rata Rule Affects Your Backdoor Roth ConversionLearn about How the Pro Rata Rule Affects Your Backdoor Roth Conversion
- 11The Step-by-Step Process for Converting Money to a Roth AccountLearn about The Step-by-Step Process for Converting Money to a Roth Account
- 12Yes, Roth Conversions Are Taxable — Here's What You OweLearn about Yes, Roth Conversions Are Taxable — Here's What You Owe
- 13How Much You Can Convert to a Roth Each YearLearn about How Much You Can Convert to a Roth Each Year
- 14How Roth Conversions Work and When They Make SenseLearn about How Roth Conversions Work and When They Make Sense
- 15How a Backdoor Roth Conversion Works When Your Income Is Too HighLearn about How a Backdoor Roth Conversion Works When Your Income Is Too High
- 16When You Can Convert Money to a Roth AccountLearn about When You Can Convert Money to a Roth Account
- 17When You Owe Taxes on a Roth ConversionLearn about When You Owe Taxes on a Roth Conversion
- 18The Right Time To Convert Money Into a Roth AccountLearn about The Right Time To Convert Money Into a Roth Account