Financial planners are encouraging clients to consider Roth conversions in 2026, while current tax brackets remain in effect before potential sunsetting of the 2017 tax cuts.
Converting traditional IRA assets to Roth creates current tax liability but eliminates required minimum distributions and provides tax-free growth and withdrawals in retirement.
Optimal conversion amounts fill up lower tax brackets without pushing into higher ones. Those with fluctuating income can time conversions for lower-income years to minimize taxes.
