---
title: "What Is Roth conversion? | Seek First Glossary"
description: "A Roth conversion moves money from a pre-tax IRA to a Roth IRA. You pay income tax on the converted amount in the year of the move, and qualified Roth..."
url: https://seekfirst.multisites.ai/glossary/roth-conversion
publisher: Seek First
phone: +1-866-398-4044
contact: https://seekfirst.multisites.ai/contact
---

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Tax

# Roth conversion

A Roth conversion moves money from a pre-tax IRA to a Roth IRA. You pay income tax on the converted amount in the year of the move, and qualified Roth withdrawals later can be tax-free.

A **Roth conversion** moves money from a traditional IRA into a Roth IRA. The IRS says you must include in gross income the amounts you would have had to include if you had not converted them, and they are normally counted on your return for the year you convert. The IRS also says that regardless of your adjusted gross income, you may be able to convert amounts from a traditional IRA into a Roth IRA.

The payoff is later: the IRS says qualified Roth distributions are tax-free if you satisfy the requirements. Your Roth IRA also gives you more say over when you take taxable income.

**For example (round numbers):** you convert $50,000 from a traditional IRA. That $50,000 is added to your income for the year. If the added income were taxed at 24%, the tax would be about $12,000. The conversion is a trade: tax now for tax-free potential later.

Why it matters for your family: the extra income can affect other costs, such as Medicare premiums or the tax on your Social Security. The year you convert can also change your giving plan. You may want to pair a conversion with a larger gift in the same year. Ask your CPA to model it.

Read our [guide to Roth conversion questions](https://seekfirst.multisites.ai/guides/roth-conversion-questions).

[Read nextProactive tax planning: Roth conversions, equity pay and giving, planned before tax season](https://seekfirst.multisites.ai/tax-planning)

## Related terms

-   [backdoor Roth IRA](https://seekfirst.multisites.ai/glossary/backdoor-roth-ira)
-   [required minimum distribution](https://seekfirst.multisites.ai/glossary/required-minimum-distribution)
-   [IRMAA](https://seekfirst.multisites.ai/glossary/irmaa)

## Sources

1.  [IRS: Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)](https://www.irs.gov/publications/p590a)
2.  [IRS: Topic no. 309, Roth IRA contributions](https://www.irs.gov/taxtopics/tc309)
3.  [IRS: Roth IRAs](https://www.irs.gov/retirement-plans/roth-iras)

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