Roth Conversion

Definition

A Roth conversion is the process of moving funds from a traditional IRA or other pre-tax retirement account into a Roth IRA, triggering income tax on the converted amount in the year of the transfer. CPAs often advise clients on the timing and size of conversions to manage the resulting tax impact strategically. The goal is typically to pay taxes now at a lower rate to enjoy tax-free growth and withdrawals in retirement.