When it comes to retirement planning, one of the most common questions I hear is, “Should I convert my traditional IRA to a Roth IRA?”

The answer isn’t always simple, but for some people, 2026 could be an excellent time to consider a Roth conversion. Like many financial decisions, it depends on your personal situation, your future goals, and how a conversion fits into your overall retirement strategy.

Let’s walk through what a Roth conversion is, why it may be worth considering, and a few important factors to think about before making a decision.

What is a Roth conversion?

A Roth conversion occurs when you move money from a traditional IRA or qualified retirement account into a Roth IRA.

The key difference between these accounts is how they are taxed.

With a traditional IRA, contributions may have been tax-deductible, and the money grows tax-deferred. However, you’ll pay ordinary income taxes when you withdraw funds in retirement.

With a Roth IRA, you pay taxes upfront, but qualified withdrawals in retirement are generally tax-free.

When you convert funds from a traditional IRA to a Roth IRA, the amount converted is typically added to your taxable income for that year. In exchange, future growth and qualified withdrawals can be tax-free.

Why 2026 may be worth a closer look.

There are several reasons some investors are exploring Roth conversions in 2026.

One of the biggest factors is the potential for future tax changes. Current federal tax rates established under the Tax Cuts and Jobs Act are scheduled to sunset after 2025 unless Congress takes action. While no one knows exactly what future tax laws will look like, many financial professionals are evaluating whether today’s tax rates may be relatively favorable compared to what could come later.

If you believe your tax rate could be higher in retirement or higher in the future, generally it may make sense to pay taxes on some retirement assets now rather than later.

Of course, tax laws can change, and no one knows what the future holds. That’s why it’s important to evaluate your situation carefully rather than making decisions based solely on headlines.

Who might benefit from a Roth conversion?

While Roth conversions aren’t right for everyone, they can be particularly attractive in certain situations.

You’re in a lower-income year.

If you’ve recently retired but haven’t started taking Social Security or Required Minimum Distributions (RMDs), you may find yourself in an unusually low tax bracket.

This “income gap” can create an opportunity to convert retirement assets while paying taxes at a lower rate than you might face later.

You expect higher taxes in retirement.

Many people assume they’ll automatically be in a lower tax bracket once they stop working. However, that’s not always the case.

Pensions, Social Security benefits, investment income, and future RMDs can sometimes create more taxable income than retirees expect.

If you anticipate being in the same or a higher tax bracket later, a Roth conversion may deserve consideration.

You want more tax flexibility.

One benefit I often discuss with clients is flexibility.

Having money in both traditional and Roth accounts can provide more options when creating retirement income strategies. Instead of relying solely on taxable withdrawals, you may have access to tax-free Roth distributions when needed.

That flexibility can become especially valuable during years when managing taxable income is important.

You want to leave assets to heirs.

For some families, Roth accounts can also be an effective estate planning tool.

While beneficiaries still must follow distribution rules, inherited Roth assets generally provide tax-free withdrawals if requirements are met. This can potentially create a more tax-efficient legacy for loved ones.

Situations where a Roth conversion may not make sense.

As appealing as tax-free income sounds, Roth conversions aren’t always the right move.

You may want to think carefully if:

• The conversion would push you into a significantly higher tax bracket.
• You don’t have cash available outside the retirement account to pay the tax bill.
• You expect your future tax rate to be substantially lower.
• The funds will likely be needed in the near future.

A Roth conversion creates a tax cost today in exchange for potential future benefits. The timing and amount of the conversion matter.

In many cases, converting smaller amounts over several years can be more efficient than converting everything at once.

Don’t focus on taxes alone.

One mistake I see people make is looking at Roth conversions solely through the lens of taxes.

Taxes are certainly important, but they are only one piece of the puzzle.

Your retirement income needs, estate planning goals, investment strategy, healthcare considerations, and overall financial picture should all be part of the conversation.

That’s why I encourage people not to think of a Roth conversion as a standalone transaction. Instead, view it as one potential tool within a comprehensive retirement plan.

Planning with purpose.

As we move through 2026, many investors are taking a fresh look at their retirement strategies, and Roth conversions are often part of that discussion.

For some individuals, a Roth conversion can create meaningful long-term benefits and greater flexibility in retirement. For others, the tax cost may outweigh the advantages.

The key is understanding how the decision fits into your unique circumstances.

Every family’s situation is different. That’s why I believe the best approach is to start with a conversation, review the numbers carefully, and evaluate the opportunities before making a move.

When it comes to retirement planning, thoughtful decisions today can help create more confidence and flexibility for the years ahead.