Plan before creating a tax bill
401(k) to Roth IRA Conversion
Review Roth conversion considerations in a no-cost consultation.
Plan before creating a tax bill
Review Roth conversion considerations in a no-cost consultation.
A Roth conversion trades a known tax bill today for tax-free growth and no lifetime RMDs later. The bill is knowable in advance: the converted amount stacks on top of your other income and is taxed at 2026 federal rates of 10–37% plus Utah’s flat 4.45%. And since 2018, conversions are irrevocable — there is no undo.
That’s why the size and timing of a conversion matter more than the decision itself. Most well-executed conversions are partial: yearly slices that fill, but don’t cross, the current tax bracket. Run your own numbers in our free conversion estimator, then pressure-test the plan with us and your tax professional.
Only the dollars that cross into a higher bracket pay the higher rate. Converting exactly to the top of your current bracket (“bracket filling”) is the core technique; the estimator shows your room to the next bracket.
A couple filing jointly with $80,000 of taxable income converting $50,000: $20,800 finishes the 12% bracket ($2,496), $29,200 lands in 22% ($6,424), plus $2,225 Utah — $11,145 total, 22.3% effective.
Each conversion has its own five-year clock before converted principal is penalty-free if you’re under 59½; separately, Roth earnings are tax-free only at 59½+ with five years since your first Roth was funded.
Conversion income counts toward IRMAA two years later — 2026 surcharges start above $109,000 single / $218,000 joint MAGI, and crossing by $1 triggers the full tier. Near-Medicare converters should size around the thresholds.
Withholding the tax from the conversion shrinks the Roth — and under 59½, the amount held back is itself a penalized early withdrawal. Cash on hand for the tax bill is part of conversion readiness.
Recharacterization of conversions ended with the 2017 tax law. Since the transaction is permanent, the estimate comes first — never after.
Married filing jointly, $80,000 of 2026 taxable income before converting — official 2026 brackets plus Utah’s 4.45%:
| Amount converted | Federal tax | Utah tax | Total | Effective rate |
|---|---|---|---|---|
| $20,800 — fills the 12% bracket exactly | $2,496 | $926 | $3,422 | 16.5% |
| $50,000 | $8,920 | $2,225 | $11,145 | 22.3% |
| $100,000 | $19,920 | $4,450 | $24,370 | 24.4% |
Your income and filing status change every row — compute your own in the conversion estimator. The initial consultation is $0; because conversions are irrevocable and interact with credits, Social Security taxation, and Medicare, review the final number with a qualified tax professional before executing.
We treat Roth conversions as potentially taxable planning decisions, not ordinary account transfers.
We can discuss whether evaluating smaller conversions over time deserves consideration.
When tax consequences are material, we encourage coordination with your qualified tax professional.
Before converting pre-tax retirement money to a Roth IRA, understand the tax questions and alternatives. Schedule your no-cost consultation →
Prefer to talk? Call 435-291-5444.
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We review the retirement account and determine which assets you are considering for conversion.
We explore why you are considering Roth assets and how the conversion relates to your retirement plan.
We discuss full and partial conversion approaches and the importance of estimating taxable income.
You can review the potential tax consequences with a qualified tax professional before acting.
If you decide to proceed, the applicable plan and IRA providers supply the transfer and conversion instructions.