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Saving for retirementis important.
So should you convert your IRA to a Roth?
There are many factorsyou should consider when making the decision.
What Is a Conversion?
A conversion takes place if you move your funds and assets from a traditional IRA to a Roth IRA.
That can lead to savings if the taxes will increase after the change.
An unconverted IRAs minimum distribution may keep you in a higher tax bracket than youd expected in retirement.
Theres also the question of tax cuts.
Consider a married couple filing jointly with income between $201,051 and $383,900.
Moreover, the state tax amount would be deductible on your 2026 federal tax return.
Who Shouldnt Convert?
For example, those receiving Social Security or Medicare benefits could lose out from a conversion.
Theyd have more taxable income and, therefore, would pay additional tax onSocial Security benefits.
Plus, theyd see an increase in Medicare costs.
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