Should You Convert Your 401(k) or IRA to a Roth?

TL;DR: Should You Convert Your 401(k) or IRA to a Roth?

If you’re between 45–60, now is the ideal time to explore a Roth conversion strategy. By shifting money from tax-deferred accounts like a 401(k) or Traditional IRA into a Roth IRA, you could:

• Lock in lower tax rates today

• Allow your retirement savings to grow tax-free

• Reduce or even eliminate taxes on Social Security benefits

• Avoid large tax bills when Required Minimum Distributions (RMDs) kick in later

At my firm, we use a custom-built planning tool—the Roth Tax Map™—to project your future income and taxes. This allows us to design a tax-focused retirement distribution strategy that helps reduce your lifetime tax burden.

Want to know if you're a good candidate for a Roth conversion strategy?
Schedule a consultation with us. If there's a fee, it will be applied toward the full cost of your Roth Tax Map™ plan.

Why Converting to a Roth Could Be the Smartest Tax Move You Make in Your 50s

You’ve worked hard to build up retirement savings. But if most of that money is in tax-deferred accounts like a Traditional IRA or 401(k), the IRS has a claim on it. Every withdrawal in retirement will be taxed as income—and those taxes can add up quickly, especially when combined with Social Security benefits and RMDs.

Fortunately, there’s a strategic way to get ahead of this: a Roth IRA conversion.

What Is a Roth IRA Conversion?

A Roth conversion means moving funds from a Traditional IRA or 401(k) into a Roth IRA. You pay taxes on the amount converted now, but from that point forward, the growth is tax-free, and so are the distributions (as long as IRS rules are followed).

It's not a one-size-fits-all move. But for many people between 45–60, it's one of the most powerful tools for tax planning in retirement.

Why Ages 45–60 Are the Prime Years for Planning

During this phase of life, you may experience a lower-income period—children may be out of the house, major expenses are behind you, and retirement is on the horizon. That makes it a sweet spot for filling up lower tax brackets through strategic Roth conversions.

Doing it early can:

• Spread the tax impact over multiple years

• Lock in current tax rates before they potentially rise

• Give your Roth funds decades of tax-free growth

Introducing the Roth Tax Map™

At Hunter T. Bracy, CPA, we’ve developed a specialized planning process called the Roth Tax Map™. This tax-focused tool projects your:

• Wages and earned income

• Social Security benefits (and how they’ll be taxed)

• Pension or other retirement income

• Investment income

• Growth in tax-deferred accounts

We then build a custom Roth conversion strategy based on IRS tax brackets and future income timing—designed to:

• Minimize taxes across your retirement years

• Keep you in the lowest possible effective tax bracket

• Reduce or eliminate taxes on your Social Security income

• Help you avoid large RMD-related tax spikes

This is not investment advice. It’s a tax-planning analysis grounded in the IRS rules and your real financial picture.

Why Not Wait Until Retirement?

Waiting until retirement might seem smart—but often it’s too late. Many retirees find themselves forced to take large RMDs, which not only bump them into higher brackets but also cause up to 85% of their Social Security benefits to become taxable.

Converting to Roth before retirement allows us to keep your income in check later—when it matters most.

Real Tax Savings, Real Clarity

The Roth Tax Map™ gives you a clear understanding of:

• When to convert

• How much to convert

• How to spread out conversions for the best tax outcome

And most importantly: It helps you make tax decisions based on data, not guesswork.

Want to Know If You’re a Good Candidate?

If you’re in your late 40s, 50s, or early 60s and have significant savings in tax-deferred accounts, it’s worth a conversation.

Reach out to my firm for a Roth Tax Map™ consultation.
There may be a fee for the consultation, but it will be applied to the cost of your personalized tax strategy plan.

This is your chance to take control of your tax future—and keep more of what you’ve worked so hard to save.