Roth Conversions in 2026: When They Pay Off
Converting a [traditional IRA or 401(k)](/posts/2026-02-27/deep-dive-roth-ira-vs-traditional-ira-which-is-right-for-you-in-2026) to a Roth account means paying income tax now to enjoy tax-free withdrawals later. It sounds simple, but the math behind a smart Roth conversion is anything but. The right conversion in the right year can save tens of thousands in lifetime taxes. The wrong one just accelerates a tax bill for no benefit. With the 2026 tax brackets now set — the seven-rate structure locked in by the One Big Beautiful Bill Act — and the fed funds rate sitting at 3.64%, the conversion calculus has shifted. The 24% bracket for married filers now stretches to $403,550, giving middle-income retirees and pre-retirees a wider lane to convert at favorable rates. But new wrinkles like the 35% itemized deduction cap and Medicare IRMAA surcharges mean the effective cost of a conversion can be higher than the headline tax rate suggests. Here's how to figure out whether a Roth conversion makes sense for you in 2026, how much to convert, and the traps that catch people who don't run the numbers.