Guide section
What a conversion does
A conversion moves money from a pretax retirement account into a Roth account. The converted amount is usually taxable in the year of the conversion.
The benefit is that future qualified Roth withdrawals can avoid income tax.
Guide section
When conversions look strongest
They are often most useful in lower-income years, early-retirement gap years, or when future required minimum distributions are likely to be large.
The downside is the immediate tax bill and the need to avoid pushing yourself into costly tax cliffs.
Bottom line
Where this guide should leave you
Conversions are about tax timing, not free money. Model both the current tax cost and the long-term benefit before acting.
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