Roth conversions · Year-end 2026

Should you do a Roth conversion before December 31, 2026?

Reviewed by Jim Swiech, CPA · Updated October 25, 2026

Quick answer

For a typical direct IRA-to-Roth conversion, the custodian must complete the transaction by December 31, 2026, for it to count in 2026. Simply submitting the request before year-end is not enough.

Certain qualifying 60-day rollover conversions follow different timing rules. Those should be reviewed individually rather than used as a last-minute workaround.

A Roth conversion made under current law cannot be recharacterized back into a traditional IRA.

Whether you should convert in 2026 depends on your current income, future retirement taxes, Medicare premiums, deductions, and the needs of a surviving spouse. The appropriate amount may be zero.

Go Beyond Tax is a flat-fee retirement tax planning practice led by Jim Swiech, CPA. We offer virtual consultations across the United States and can discuss whether a 2026 conversion analysis is appropriate and feasible within the remaining time.

Why people revisit Roth conversions near year-end

By the fall, many people have a clearer picture of their annual income. Wages, pensions, Social Security, investment gains, and other income may be easier to estimate than they were in January.

Some important numbers can still change. Mutual fund distributions, investment sales, bonuses, and other transactions may not be final until December.

Year-end planning gives us an opportunity to update the numbers before making a decision. It does not eliminate uncertainty, and there is no requirement to wait until fall to evaluate a Roth conversion.

When a 2026 conversion deserves a closer look

A Roth conversion may be worth analyzing if:

Your income is temporarily lower than you expect it to be later in retirement.
You have substantial traditional retirement savings that could produce large required minimum distributions.
You are married and want to understand how retirement taxes could change after either spouse dies.
You have money outside your retirement accounts available to pay the conversion tax.
You want to compare the current tax cost with future taxes, Medicare premiums, and the effect on your beneficiaries.

These are reasons to run the numbers, not reasons to convert automatically.

A conversion may be less attractive when it creates significant current taxes, reduces valuable deductions, or when future withdrawals are likely to face substantially lower tax rates. The answer depends on the complete situation.

The 2026 figures a conversion is measured against

2026 federal figures for a married couple filing jointly. Taxable income is income after deductions.
Line	2026 amount	What it means for a conversion
Standard deduction	$32,200	Base standard deduction for married couples filing jointly. Eligible taxpayers age 65 or older may qualify for additional deductions, so this is not the full calculation.
Top of the 12% bracket	$100,800	Taxable income up to here is taxed at 12% or less. Many retirees fill to this line.
Top of the 22% bracket	$211,400	This is the top of the 22% federal ordinary-income bracket. The overall tax impact can be higher when a conversion changes other deductions, Social Security taxation, state taxes, or Medicare premiums.
First Medicare IRMAA threshold, 2026 premiums	$218,000	This is the threshold for 2026 premiums, not the yet-unknown 2028 threshold. A conversion in 2026 generally enters the income calculation for 2028 premiums.

For 2026 Medicare premiums, the first IRMAA threshold is $218,000 for married couples filing jointly and $109,000 for single filers. These figures are shown for reference, not as 2026 conversion limits. Federal income tax brackets are based on taxable income. Medicare IRMAA uses modified adjusted gross income, generally adjusted gross income plus tax-exempt interest. A conversion can affect both calculations differently.

One 2026 rule retirees should not overlook

If you are 65 or older, you may qualify for deductions beyond the regular standard deduction. The additional standard deduction for age 65 is $1,650 per eligible spouse on a joint return for 2026.

For 2026, the enhanced senior deduction can be as much as $6,000 per eligible person, or $12,000 for a qualifying married couple. It begins to phase out when modified adjusted gross income exceeds $150,000 on a joint return or $75,000 for a single filer.

A Roth conversion increases income and may reduce this deduction. That can change the effective tax cost of converting, even when the conversion stays within the same federal tax bracket. The enhanced deduction does not reduce the modified adjusted gross income Medicare uses.

We include applicable deductions and phaseouts when evaluating a conversion amount.

How a 2026 conversion can affect Medicare in 2028

Medicare generally uses tax information from two years earlier to determine income-related premiums. That means a Roth conversion reported on your 2026 return may affect your Medicare Part B and Part D premiums in 2028.

The thresholds and premiums for 2028 have not been announced. As a reference, the standard Part B premium in 2026 is $202.90 per month, and the first higher-income tier is $284.10 per month, plus any applicable Part D surcharge.

Crossing an income threshold can cause a higher monthly premium. The actual cost depends on the thresholds in effect, Medicare enrollment, and whether an adjustment or reconsideration applies.

This is why we look at the Medicare impact when evaluating a Roth conversion, rather than simply converting up to the top of a federal tax bracket.

What to have in hand before deciding

Your 2025 return, and the 2026 income you already know: Social Security, pensions, wages, interest, dividends, gains.
If you have a required minimum distribution for 2026, confirm whether it has been satisfied. An RMD cannot be converted to a Roth IRA, and the year's RMD obligation must be satisfied before other IRA funds are converted.
Whether you have after-tax basis in any traditional, SEP or SIMPLE IRA (this changes how much of a conversion is taxable and may require Form 8606).
Year-end fund distribution estimates from each taxable account, usually posted in November.
Current balances in traditional, Roth and taxable accounts, and where the conversion tax would be paid from.
Both spouses' ages, Medicare status, and the year RMDs begin for each.
Your state of residence during 2026 and any other states where you may owe income tax.

Timing, withholding, and estimated taxes

For a direct conversion, confirm your custodian's processing deadline and whether the transaction can be completed in 2026. Sending instructions on December 31 does not mean they will be processed that day.

A conversion generally creates taxable income to the extent the traditional IRA contains money that has not already been taxed.

For IRA conversions, you can generally elect not to have federal tax withheld. Paying the tax from money outside the IRA allows more of the converted amount to remain in the Roth. Withholding and rollover rules can differ for employer retirement plans.

You may also need to make an estimated tax payment. January 15, 2027 is the regular due date for the fourth 2026 federal estimated-tax installment. Whether a payment is necessary depends on your withholding, estimated payments, safe-harbor rules, and when the additional income arose.

Because Roth conversions cannot be recharacterized, review the amount and the potential tax consequences before proceeding.

Can we help with a 2026 Roth conversion decision?

Go Beyond Tax offers fixed-fee retirement tax planning led by Jim Swiech, CPA. We work virtually with retirement tax-planning clients across the U.S.

If you're considering a conversion before year-end, the first step is to discuss your situation and determine what analysis is needed. We will confirm whether we can complete the agreed work in time for a 2026 decision before you begin a paid engagement.

The Retirement Tax Assessment is a narrower review of recent tax returns and planning opportunities. The Comprehensive Retirement Tax Plan includes a broader, multi-year analysis. We will explain which engagement fits the question and what it includes.

Published fees. Each fee is fixed and confirmed in writing before any work begins.
Service	Fee	What it is
Retirement Tax Assessment	$1,500	A narrower review of recent tax returns and planning opportunities.
Comprehensive Retirement Tax Plan	$4,950	A broader, multi-year analysis with written recommendations.

Each custodian has its own processing requirements and deadlines. We cannot guarantee that a requested conversion will be completed before December 31.

All fees and deliverables are confirmed in writing before work begins. Services outside the agreed scope are quoted separately.

A Go Beyond Tax tax-planning engagement does not require you to move your investments or replace your current financial advisor. We build the tax plan and, with your permission, coordinate the tax recommendations with the professionals you already use.

Every service, what it includes and what sits outside it, is on the pricing page. What the full planning looks like when it is done is on the $1.5 million case study, and how to judge anyone you are thinking of hiring, including us, is on the hire-a-CPA page.

Go Beyond Tax does not sell investments or insurance to its planning clients and earns no commissions from them.

What happens next

Your first meeting is a free 30-minute video conversation with Jim. He will discuss your goals, your questions, and the information a conversion analysis would require. The call does not include a completed tax calculation or a specific conversion recommendation. If an engagement makes sense and we have availability, you will receive its scope, fee, and expected timing in writing.

Sources

Considering a Roth conversion before December 31?

Schedule a free 30-minute conversation with Jim about your situation, the analysis you may need, and whether we have time to take on the work.

Book my free call