A Roth conversion moves money from a traditional IRA or other pre-tax retirement account into a Roth IRA: you pay income tax on the converted amount that year, and qualified withdrawals later are tax-free.
There is no income limit on conversions. The IRS lets you convert regardless of your adjusted gross income, even if you earn too much to contribute to a Roth directly. In 2026 the direct contribution phase-out is $153,000 to $168,000 for single filers and $242,000 to $252,000 for married couples filing jointly.
The converted pre-tax amount is added to your taxable income for the year, so the decision comes down to tax rates: converting pays off when your rate now is lower than the rate you expect when the money comes out. That is why many people convert in the years between retiring and the start of required minimum distributions, and spread conversions over several years to stay in a lower bracket.
Three rules catch people. A conversion can't be undone (recharacterization of conversions ended in 2018). Converted amounts withdrawn within five years, before age 59½, can face the 10% early-distribution tax. And you can't convert an amount that is your required minimum distribution for the year.
How to check
Ask an advisor to show the projected tax on each conversion amount and the bracket it lands in, year by year. The conversion is reported on IRS Form 8606, filed with your return.
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