Retirement & Savings

What Is a Roth Conversion?

A Roth conversion moves money from a pre-tax retirement account, such as a traditional IRA or 401(k), into a Roth account. The converted amount is generally added to taxable income in the year of the conversion. Afterward, qualified withdrawals from the Roth account are tax-free.

Tax Effect

Because the conversion is taxed as ordinary income, it can move a taxpayer into a higher bracket for that year. Conversions cannot be undone under current rules.

Five-Year Rule

Each conversion has its own five-year period for penalty-free withdrawal of converted amounts before age 59½.

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🔗 Related Terms

Roth IRA Traditional IRA Marginal Tax Rate Retirement Account Rollover Required Minimum Distribution (RMD)

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.