General Information

  • This strategy creates taxable income in the present to receive the future tax-free growth benefits of a Roth IRA. 
  • There is no limited on the amount you can convert per year or lifetime.


Retirement accounts that can be converted to a Roth IRA include:

  • Traditional IRA
  • Employer retirement plan (401k, 403b, 457b)



  • a Roth IRA is not subject to the Requirement Minimum Distribution rules. 
  • Converted amount and earnings grow tax-free. 
  • You can withdraw contributions at any time, for any reason, tax-free.
  • Those normally ineligible for a Roth IRA can execute a conversion to create a Roth IRA. Back-Door Roth IRA Contributions are an example of this.
  • Can leave a tax-free financial legacy to your heirs.



You pay tax on the conversion when executed – and it could be substantial depending on your tax brackets.

  • You may not benefit if your tax rate is lower in the future.
  • The 5-year withdrawal rule may apply to earnings, even if you’re already age 59 1/2
  • Figuring taxes can be complicated if you have other Traditional, SEP, or SIMPLE IRAs you’re not converting.
  • Required Minimum Distributions cannot be satisfied by a Roth IRA conversion.