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Question

What is a Roth conversion?

Answer

A Roth conversion is a strategy that moves money from a traditional pretax retirement account, such as a 401(k), into a Roth IRA, where it can grow tax-free. You pay income tax on the converted amount in the year you convert, but qualified withdrawals in retirement — and for your heirs — come out tax-free. The strategy can work best when your tax rate today is lower than the rate you’d pay in the future.

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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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