When is the best time to do an IRA Conversion?

The best time for a Roth IRA conversion is usually when your current tax rate is lower than what you expect in the future. Many people find a “sweet spot” in the years after they stop working but before required minimum distributions and sometimes before Social Security benefits begin. Those years often have more room in lower tax brackets. A year with unusually low income—like a business slump, a big deduction, or a sabbatical—can also be attractive because you can convert more at lower rates. Converting during a market downturn can help too, since you pay tax on temporarily reduced values that may later recover tax‑free in the Roth.

Learn more about IRA conversion appraisals.