Should I Do a Roth Conversion This Year?

Roth IRAs are more than just retirement accounts; they are also a powerful tax-advantaged savings vehicle, making them a strategic tool for tax-planning. By creating a pool of assets that can grow and be distributed tax-free, Roth accounts add flexibility to how and when income is recognized. That flexibility can help manage tax brackets and Medicare premium surcharges in retirement, reduce the impact of Required Minimum Distributions, and enhance the after-tax value of assets passed to beneficiaries.

In 2026, the conversation around Roth strategies is especially timely. With tax brackets unchanged and long-term fiscal uncertainty still lingering, many investors are reassessing how much of their retirement savings should remain in pre-tax accounts versus being converted into tax-free vehicles, like a Roth IRA.

The primary benefit of a Roth conversion is not simply to convert assets or avoid taxes today, it is to minimize the total costs of distributing each dollar from your pre-tax accounts.

There are a number of factors that influence the decision to do a Roth conversion. Take the quiz below to gain an understanding of whether a conversion makes sense for you this year.

Roth Conversion Consideration Quiz

1. Do you expect your federal tax rate to be higher in the future than it is today?

A. Yes: I expect my tax rate to be higher in retirement or later years. B. No: I expect my tax rate to be lower later.
C. I’m not sure.

Why it matters: Tax rates determine how much you pay on every dollar you convert or withdraw. If you expect higher rates later, paying tax now may reduce lifetime tax burden.

2. Will your Required Minimum Distributions (RMDs) exceed the amount you expect to spend in retirement?

A. Yes: I likely won’t need all my RMD income. B. No: I’ll likely spend most of what I receive.

Why it matters: Excess RMDs can increase taxes, Medicare premiums, and Social Security taxation. Roth conversions can reduce future forced withdrawals.

3. How would you pay the taxes on a Roth conversion?

A. From taxable (non-retirement) assets. B. From the IRA assets being converted.

Why it matters: Paying taxes from outside assets allows more money to grow tax-free inside the Roth.

4. Will your beneficiaries likely be in a higher or lower tax bracket than you?

A. Higher
B. Lower
C. Unsure

Why it matters: Inherited IRAs are taxable to beneficiaries. Roth accounts may allow tax-free inheritance.

5. Are you planning to move to a higher- or lower-income-tax state?

A. Higher tax state
B. Lower tax state
C. No change

Why it matters: State tax differences affect both conversion cost and future withdrawals.

6. Do you plan to leave a significant portion of your retirement assets to charity?

A. No
B. Yes

Why it matters: Charities do not pay income tax on inherited IRAs, making pre-tax assets highly efficient for charitable giving.

The information in this paper is not intended as legal or tax advice. Consult with an attorney or a tax or financial advisor regarding your specific legal, tax, estate planning, or financial situation.