what is a roth conversion

A Roth conversion is a process that involves moving assets from a traditional, SEP, or SIMPLE IRA, or a defined-contribution plan like a 401(k), into a Roth IRA. During the conversion, the account owner has to pay income tax on the amount being converted. The key benefit of a Roth conversion is the potential for tax-free withdrawals from the Roth IRA in the future. This can be advantageous if the account owner expects to be in a higher tax bracket in the future. However, a Roth conversion may not be appropriate for everyone, and careful consideration of the tax implications is necessary. It's also important to note that once a conversion is done, it cannot be undone. Therefore, it's essential to evaluate whether a Roth conversion aligns with your long-term financial goals and tax situation