Key Detail Summary What It Is Moving money from a pre-tax IRA or 401(k) into a Roth IRA Tax Treatment Pay taxes now; enjoy tax-free growth later Income Limits None for conversions 5-Year Rule Wait 5 years for tax-free earnings withdrawals Best Time to Convert During low-income years or market dips Pros Cons Tax-free growth and withdrawals Large upfront tax bill No RMDs (withdraw anytime) May raise Medicare premiums temporarily Tax-free inheritance for heirs Risk of a higher bracket in the conversion year Flexibility for future withdrawals Risk of a higher bracket in the conversion year FAQs: Roth IRA Conversion Rules and Strategies Here are answers to the most common questions about Roth IRA conversions: How much tax do you pay on a Roth IRA conversion?