Quiz

Should I Do a Roth Conversion This Year?


Mar. 24, 2026

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?

Why it matters: Tax rates determine how much you pay on every dollar you convert or withdraw. If you expect your tax rate to be higher later (whether due to personal income changes or potential legislative increases), paying tax now through a Roth conversion may reduce your lifetime tax burden. Future rates may look different than today’s, making forward-looking planning critical.

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

Why it matters: If RMDs significantly exceed spending needs, the excess income could push you into higher tax brackets, increase Medicare premiums, and raise the taxable portion of Social Security benefits. Converting some pre-tax assets to a Roth reduces future RMDs and may provide greater control over taxable income in retirement.

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

Why it matters: Paying conversion taxes from taxable assets allows the full converted amount to remain invested and grow tax-free in the Roth. If taxes are paid from the IRA itself, you reduce the amount transferred into tax-free status and, if under age 59½, may incur penalties. The source of the tax payment can materially affect the long-term benefit of the strategy.

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

Why it matters: Under current rules, most non-spouse beneficiaries must distribute inherited IRAs within 10 years. Large taxable distributions during high-income years can result in significant tax costs. Converting assets to a Roth may shift taxation into your bracket today and allow beneficiaries to receive tax-free distributions later, potentially improving overall tax savings across generations.

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

Why it matters: State income taxes affect both the cost of converting and the cost of future withdrawals. Converting before moving to a higher-tax state may lock in a lower overall tax cost. Conversely, waiting until after relocating to a lower-tax state may make more sense, depending on your situation.

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

Why it matters: Charities do not pay income tax on inherited retirement accounts. As a result, pre-tax IRAs can be particularly effective assets to leave to charitable organizations. If charitable giving is central to your estate plan, converting all pre-tax assets to Roth may not be the most tax-efficient approach.

A Roth conversion is not simply about today’s tax rate. It is a strategic decision designed to minimize the lifetime costs of retirement distributions. The current tax environment, combined with RMD rules and beneficiary distribution requirements, makes thoughtful evaluation especially important this year. A personalized analysis can help determine whether converting, waiting, or implementing a multi-year strategy best aligns with your financial goals.

Get started

A financial advisor can help you decide whether a Roth conversion is right for you, your retirement savings, and your tax plan. We can help you understand the impact and benefits to your financial plan, and manage the conversion process. Schedule a call today to get started.

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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.

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