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Question

What’s the difference between a Roth conversion and a Roth contribution?

Answer

A Roth contribution is new money you add to a Roth IRA from your earnings, subject to annual income limits. A Roth conversion moves existing pretax savings from a traditional IRA or 401(k) into a Roth account, with no income limits on who can convert. You pay taxes on the converted amount, but the converted funds can then grow tax-free and be withdrawn without taxes in retirement.

Related FAQs

How does a Roth conversion compare to leaving money in a traditional IRA?

How do I calculate how much to convert to a Roth IRA?

Where can I find help building a Roth conversion strategy?
Retirement Tax Planning Retirement Planning Living in Retirement Budgeting Tax Basics Tax Tips & Tricks Early Retirement Cash Flow Management Year-Round Tax Planning FAQs
Last Updated Sept. 28, 2026
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