Frequently Asked Questions
What is a Roth conversion?
Moving money from a traditional IRA/401(k) to a Roth IRA, paying ordinary income tax on the converted amount today in exchange for tax-free growth and withdrawals later (after age 59.5 and 5-year rule).
When is a Roth conversion most attractive?
Low-income years (early retirement before Social Security and RMDs), market downturns (convert at depressed values), or if you expect higher tax rates later. The 2017 tax cuts sunset after 2025, raising rates back up, making 2024-2025 a popular conversion window.
What is the "tax bracket bumping" strategy?
Convert just enough to fill the current tax bracket without spilling into the next. For 2025, the 24% bracket extends to $197,300 single / $394,600 MFJ. Converting up to those thresholds is often optimal for affluent retirees.
Can I undo a conversion?
No; recharacterizations of conversions were eliminated by the Tax Cuts and Jobs Act of 2017. Once you convert, the tax bill is owed. This makes conversion timing and amount critical decisions.
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