Roth vs Traditional Conversion Strategy (2025)

Converting pre-tax retirement funds to Roth can reduce future taxable RMDs but triggers income in the conversion year. Evaluate current vs expected future tax rates and consider partial conversions across years to manage bracket impact.

Considerations

• Estimate the tax cost today vs long-term benefits.
• Watch for income-driven phaseouts (credits, ACA subsidies) when converting.
• Use carry-forward or multi-year conversion plans to smooth tax impact.

Verify 2025 brackets and phaseout thresholds before executing large conversions.