What is a Roth IRA conversion?

A Roth IRA conversion moves money from a Traditional IRA (pre-tax) to a Roth IRA (post-tax), triggering income taxes on the converted amount in the year of conversion. It makes sense when your current tax rate is lower than you expect in retirement — for example, in a low-income year or after retirement but before Social Security begins. Converting in stages over multiple years can spread out the tax hit efficiently.