Should You Do a Roth Conversion? 6 Factors to Weigh in 2026

Roth conversions are trending across social media right now, and lately I’m hearing the same question from a lot of clients: should I convert my traditional IRA to a Roth — and if so, how much and when?

My honest answer is that it depends on a handful of factors you can actually check. Below, I’ll walk through the ones I look at first. And if you want the complete framework — with the full 2026 bracket table, a worked multi-year example, and a step-by-step decision checklist — I’ve put it all in a free guide you can download at the end.

My Quick Answer: When a Roth Conversion Makes Sense

In my experience, a Roth conversion usually makes sense when all three of these are true:

1. You can pay the tax at a lower rate today than you (or your heirs) would pay later.

2. You can pay that tax with money from outside the IRA.

3. You have years of tax-free growth ahead for the converted dollars to compound.

It usually doesn’t make sense when converting pushes you into a higher tax bracket, spikes your Medicare premiums, or forces you to use the IRA itself to pay the tax.

What a Roth Conversion Is

A Roth conversion moves money from a pre-tax account (a traditional IRA, or sometimes a 401(k)) into a Roth IRA. You pay ordinary income tax on the converted amount this year. In general, converted amounts in a Roth IRA may grow tax-free and qualified distributions in retirement may be tax-free, subject to applicable tax rules and your individual circumstances.

Roth IRAs are generally not subject to required minimum distributions for the original owner, and heirs may receive favorable tax treatment depending on applicable law

One thing many people don’t realize: unlike Roth contributions, conversions have no income limit — anyone with a pre-tax balance can do one.

The 6 Factors I Weigh

1. Your age and timing. The best conversion years are often the “gap years” between when you stop working and when RMDs (age 73) and Social Security begin — your income is temporarily low, so you can convert at a low bracket. I always remind clients to watch the age-63 Medicare lookback, since a large conversion can raise your premiums two years later.

2. Your tax bracket. The goal is to convert when your rate today is at or below the rate you expect later. I usually help clients “fill up a bracket” — converting just enough to reach the top of the 12%, 22%, or 24% bracket rather than converting everything at once. For 2026, the seven federal rates (10% through 37%) were made permanent by the One Big Beautiful Bill Act.

3. The break-even. A conversion only creates value when there’s a rate difference in your favor. Convert at 22% and withdraw later at 32%, and you come out ahead. Convert at a high rate to avoid a lower future one, and you’ve lost ground.

4. The inherited IRA 10-year rule. This is the change that’s made conversions far more compelling, and it’s a big part of why I’m getting so many questions. Under IRS final regulations issued in July 2024, most non-spouse heirs must empty an inherited IRA within 10 years (with annual distributions required in years 1–9 if the owner had already begun RMDs), and enforcement began with the 2025 distribution year. For a traditional IRA, that forces a high-earning child to withdraw taxable money during their peak earning years. If you convert to a Roth first, your heir may be able to withdraw those assets income-tax-free, subject to applicable distribution and tax rules in effect at that time.

5. Never withhold the tax from the conversion. This is the most common — and most costly —mistake I see. If you convert $100,000 and have 24% withheld, only $76,000 actually reaches the Roth, and if you’re under 59½, that withheld amount can trigger a 10% penalty. I always advise paying the tax from outside funds so the entire amount keeps growing tax-free. Here’s a simple test I share: if you can’t pay the tax without dipping into the IRA, the conversion is probably too big for this year.

6. Outlier years and offsets. Some of the best opportunities I find for clients are situational. A low-income year, a deductible business loss, or a large charitable deduction (like funding a donor-advised fund) can let you convert at a very low — sometimes near-zero — effective rate.

How I Help Clients Decide, in Five Steps

1. Estimate your tax rate now versus later — including your heirs’ likely rate.

2. Figure out how much you can convert before jumping a bracket or tripping a threshold.

3. Confirm you can pay the tax from outside the IRA — if not, convert less.

4. Size the conversion to fill a bracket, not to empty the account in one year.

5. Revisit it every year. A conversion strategy is a multi-year project, not a one-time move

Get My Full 2026 Guide

This is the quick version of how I think about it. My free 2026 Roth Conversion Guide goes deeper, with the complete federal bracket table, a worked multi-year example, the full “when not to convert” checklist, and the situational strategies that can lower your effective tax rate.

DOWNLOAD THE FREE 2026 ROTH CONVERSION GUIDE

And if you’d rather just talk it through, reach out to our team at clientservice@ranchcap.com — We are always happy to model your specific numbers.

Frequently Asked Questions

Is there an income limit to do a Roth conversion?

No. Unlike Roth contributions, conversions have no income limit. Anyone with a pre-tax retirement balance can convert, regardless of income.

How much should I convert in a year?

There’s no universal number. I generally suggest converting only enough to “fill up” your current tax bracket — often the top of the 12%, 22%, or 24% — rather than converting a large balance all at once and spilling into a higher rate.

Should I have taxes withheld from my Roth conversion?

Generally, no. Withholding means that portion never reaches the Roth and may be penalized if you’re under 59½. I advise converting the full amount and paying the tax from outside funds.

Does the inherited IRA 10-year rule apply to Roth IRAs too?

Yes — most non-spouse heirs must empty an inherited Roth within 10 years. But because Roth distributions are tax-free, an heir can let the account grow for the full 10 years and withdraw it all at the end without owing income tax.

What’s the best age to do a Roth conversion?

There’s no single best age, but the “gap years” between retirement and the start of RMDs (73) and Social Security are often ideal, because income is temporarily low.

Can a Roth conversion be undone?

No. Since 2018, conversions can no longer be reversed, which is exactly why sizing them correctly in the first place matters.