I Asked ChatGPT If Roth Conversions Are Still Worth It in 2026 — Here’s What It Said

Core Insights - A Roth conversion is a trade-off involving immediate tax payments for potential future tax benefits [1] Group 1: Roth Conversion Overview - A Roth conversion transfers funds from a traditional IRA to a Roth IRA, with the converted amount taxed as ordinary income in the year of conversion [2] - Future qualified withdrawals from a Roth IRA are tax-free, providing a long-term tax advantage [2] Group 2: Tax Implications and Timing - It is not necessary to convert the entire IRA balance at once; multiple smaller conversions can be more tax-efficient [3] - Large conversions may push individuals into higher tax brackets, negating potential long-term benefits [3] Group 3: Advantages of Roth IRAs - Roth IRAs do not have required minimum distributions (RMDs) during the owner's lifetime, unlike traditional IRAs which require RMDs starting at age 73 [4] Group 4: When Roth Conversions are Beneficial - Roth conversions are most advantageous during low-income years, such as early retirement or career transitions, when individuals are in lower tax brackets [5] - Additional scenarios where conversions may be beneficial include expecting higher future tax rates, having cash available to pay taxes outside the IRA, and wanting to reduce future RMDs [6] Group 5: Potential Drawbacks of Roth Conversions - The primary drawback is the immediate tax liability, which can be substantial for large IRAs and may lead to higher tax brackets or increased Medicare premiums [7]