Ask an Advisor: Is It a Good Idea to Convert 10% of My 401(k) Each Year to Lower Taxes and Avoid RMDs?

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Is it wise to start converting my 401(k) into an IRA (and then Roth) by 10% per year in order to avoid having to claim too much income each year when converting and also avoid RMDs as much as I can? -Cathy It’s definitely smart to be thinking about this, Cathy. Systematic Roth conversions like the ones you’re describing have the potential to reduce your lifetime tax liability, increase your odds of a succe ...