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 in the Roth account, and you can withdraw it tax-free later. People consider conversions for different reasons: to reduce taxes over their lifetime, to access money before retirement age without penalties, or to leave tax-information programs to heirs. Understanding how conversions work helps you decide if one makes sense for your situation.
These articles answer the practical questions people have about conversions: how the tax bill gets calculated, whether converting makes sense if you have both traditional and Roth accounts, what happens to your Social Security or Medicare costs when you convert, and how to handle conversions across different account types. You'll also learn about the rules that limit or restrict conversions, and what steps to take after you've converted money.