RetirementNeuron guide

Roth conversion planning in retirement

A Roth conversion moves money from a traditional IRA or similar pretax account into a Roth IRA. The converted amount is generally taxed as ordinary income in the year of the conversion.

Reviewed 2026-09-28. Written by RetirementNeuron. This page was not reviewed by a CFP, CPA, attorney, or Medicare specialist. How the calculations work.

What is a Roth conversion?

A Roth conversion is a transfer from a tax-deferred retirement account into a Roth account. You pay tax on the taxable amount now. Qualified Roth withdrawals later are generally tax-free.

The conversion itself is not a tax-free event. The size of the conversion, other income, and deductions determine the tax.

RetirementNeuron can place a conversion amount on a year of the plan so the tax estimate uses that year’s other income.

When can a Roth conversion affect Medicare IRMAA?

The taxable conversion increases income for that year. Medicare’s income-related monthly adjustment amount generally uses modified adjusted gross income from two years earlier, so a conversion can raise Part B and Part D premiums later.

IRMAA is set by Medicare rules and income brackets for the premium year, not by the conversion label itself.

RetirementNeuron’s Medicare view is a watchpoint on the modeled income. It is not an enrollment decision or a premium bill.

Why do people look at the years before required minimum distributions?

Required minimum distributions add taxable income once they start. Some households compare conversions in earlier years, when other income may be lower, against the tax and IRMAA cost of converting.

That comparison is personal. A lower bracket now is not automatically better if the conversion triggers a higher Medicare premium or spends cash the household needs.

A year-by-year table in the product is a model of the assumptions you saved, not a required conversion schedule.

Questions

When should retirees consider testing a Roth conversion?

A useful test is a year when you can see the tax, the Medicare income effect, and the cash available to pay the tax. RetirementNeuron can illustrate that year. It does not decide that you should convert.

Sources

RetirementNeuron is educational planning software. It does not provide individualized investment, tax, legal, Medicare, or Social Security advice.