Let’s talk about something that’s popping up in a lot of client conversations right now—Roth conversions.

Maybe you’ve heard the buzz, seen it on financial shows, or read about it online. Maybe a friend told you they were converting their entire IRA this year and saving a fortune on taxes. You’re wondering:

“Should I be doing a Roth conversion too?”

Short answer: Maybe. But not always.

Let’s break it down—without the jargon—and walk you through when it does make sense and when it absolutely doesn’t.

First, What Is a Roth Conversion?

A Roth conversion is when you take money from a traditional IRA or 401(k)—where you haven’t paid taxes yet—and move it into a Roth IRA, where your future withdrawals can be tax-free.

Sounds great, right?

Well, here’s the catch: when you do a conversion, you’ll owe income tax this year on the money you move. So the real question becomes…

Is it worth paying taxes now to save on taxes later?

Why Roth Conversions Are a Hot Topic in 2025

Here’s what’s making Roth conversions such a timely conversation this year:

1. The Tax Cuts and Jobs Act is Sunsetting

Unless Congress makes a move, tax rates are scheduled to rise in 2026. That means 2025 might be the last full year of historically low tax rates—especially for high earners or retirees with significant IRA balances.

2. Market Volatility = Strategic Timing

Markets have been a roller coaster, and when your portfolio dips, you can convert more shares at a lower value—and potentially reap more tax-free growth when markets bounce back.

3. You’re Retired but Not Yet on Social Security

If you’re in that “retirement gap” between earning years and full Social Security/Required Minimum Distributions (RMDs), your income might be temporarily low. That’s often the sweet spot for conversions.

Real Example: When It Made Sense

When a Roth Conversion Might Not Be Smart

🚫 You’re in a high tax bracket now

Paying 32% or 37% tax today to avoid 22% later doesn’t make much sense unless there are other factors at play (like estate planning).

🚫 You need the money soon

If you’re planning to withdraw the converted funds in the next few years, you may not have enough time to benefit from the tax-free growth. Plus, Roth conversions have a five-year rule—withdraw too early and you’ll pay penalties.

🚫 You don’t have outside cash to pay the tax

Using the IRA money itself to pay taxes on the conversion can create a tax spiral and reduce the long-term benefit.

Tips for Making a Smart Roth Conversion Move

✅ Use Tax Brackets to Your Advantage

We often recommend “filling up” your current tax bracket. For example, if you’re in the 22% bracket, convert just enough to avoid jumping to 24% or 32%.

✅ Don’t Guess—Model It Out

A Roth conversion is a math problem, not a guess. We run detailed retirement tax strategy projections to see whether converting will actually benefit you long-term.

✅ Think of the Big Picture

Roth conversions don’t just impact taxes. They affect Medicare premiums, Social Security taxation, and even the taxes your kids will pay if they inherit your IRA.

Let’s Run the Numbers Together

You deserve more than a one-size-fits-all answer when it comes to your retirement tax strategy. If you’ve got a 401(k), IRA, or retirement savings and you’re wondering if a Roth conversion makes sense this year, let’s take a deeper look together.

👉 Schedule your personalized Roth Conversion Review now and get the clarity you need to move forward with confidence.

Final Thought

The best Roth conversion strategy? The one that’s built around you—your income, your goals, your timeline.

Don’t let 2025 pass without asking the question:

“Am I paying more taxes than I need to?”

Let’s find out together.