Roth Conversion Decision Flowchart

Last Reviewed: August 2026

Should You Consider Doing a Roth Conversion?

A Roth conversion allows you to move money from a Traditional IRA or other pre-tax retirement account into a Roth IRA. The conversion creates taxable income today, but it may provide future benefits through tax-free qualified withdrawals. Whether a Roth conversion makes sense depends on your current tax situation, future income expectations, and long-term retirement goals.

This flowchart helps you determine whether a Roth conversion may be beneficial for your situation. It walks through the key questions that influence whether converting retirement assets could improve your long-term financial plan.

How to Use This Flowchart

Start at the top of the flowchart and answer each question based on your current financial situation. Follow the arrows until you reach a recommendation.

The flowchart considers your current tax bracket, expected future income, retirement timeline, and available funds to pay the conversion taxes. It also considers whether you expect future tax rates to be higher or lower than they are today.

As you work through the flowchart, remember that a Roth conversion is not automatically beneficial for everyone. Converting too much in one year may push you into a higher tax bracket, increase Medicare premiums, or affect other tax benefits.

Use this flowchart as an educational guide. A successful Roth conversion strategy requires careful planning and consideration of your entire financial picture.

Why This Decision Matters

Roth conversions can create valuable tax flexibility during retirement. Moving money into a Roth IRA allows future qualified withdrawals to be tax-free and can reduce the amount of money subject to future required minimum distributions.

Many retirees have opportunities to complete Roth conversions during lower-income years. For example, the years between retirement and the start of Social Security or RMDs may provide a window for strategic conversions.

However, the goal is not always to convert as much as possible. The best strategy often involves converting the right amount at the right time. A well-planned Roth conversion can help manage lifetime taxes, improve retirement flexibility, and create more control over future income.