Should You Do a Roth Conversion in 2026?
Several factors make 2026 a potentially attractive year for conversions. Understand who benefits most, tax implications, and how to decide.
If you are thinking about retirement, or already retired, you have likely heard about Roth conversions. But knowing whether one makes sense for your specific situation requires careful analysis.
At Windward Private Wealth Management, our team of CPAs and financial advisors helps Kansas City families navigate this decision every day. Here is what we share with our clients.
What Is a Roth Conversion?
A Roth conversion moves money from a traditional IRA or 401(k) to a Roth IRA. You pay income taxes on the converted amount now, but future growth and withdrawals are tax free.
Why Consider a Roth Conversion in 2026?
Several factors make 2026 a potentially attractive year for conversions:
Current tax rates remain historically favorable. Historically low tax rates have been extended for 2026 and beyond. Future tax legislation is unknowable, take advantage of low tax rates while you can.
You may be in a lower tax bracket. If you have retired but have not started RMDs, this "gap period" often offers lower taxable income.
RMD rules have changed. With RMDs now starting at 73 (and eventually 75), you have more time to convert before required distributions push up your taxable income.
Who Benefits Most from Roth Conversions?
Based on our experience working with Kansas City families, Roth conversions tend to make the most sense for people who:
Are currently in a lower tax bracket than they expect to be in the future
Have a long time horizon of 10 or more years for the converted funds to grow
Can pay the conversion taxes from non-retirement funds
Want to reduce future RMDs
Are focused on leaving tax-free assets to heirs
When a Roth Conversion Might NOT Make Sense
Conversions are not right for everyone. You might want to hold off if:
You are in a high tax bracket now and expect to be in a lower one in retirement
You would need to use retirement funds to pay the taxes
You plan to spend down your traditional IRA relatively quickly
The conversion would push you into a significantly higher tax bracket or trigger Medicare premium surcharges
The Windward Approach: Tax First Planning
Unlike larger national firms that may treat tax planning as an afterthought, our CPA heritage means tax strategy is central to every recommendation we make.
When we analyze a Roth conversion for a client, we consider:
Your current and projected tax brackets
Medicare IRMAA thresholds
State tax implications (Kansas and Missouri have different rules)
Your complete financial picture, not just the IRA
Multi-year conversion strategies to "fill up" lower brackets
Ready to Explore Whether a Roth Conversion Is Right for You?
A Roth conversion is a significant decision that deserves careful analysis, not a one size fits all recommendation.
Schedule a complimentary Discovery Meeting with our team to learn more about your situation and help identify whether a Roth conversion strategy makes sense for your overall financial goals.
Want to learn more about private wealth planning?
This content is provided by Windward Private Wealth Management Inc. (“Windward” or the “Firm”) for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. No portion of this blog is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Certain information contained in the individual blog posts will be derived from sources that Windward believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.
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