Calculate the tax cost and long-term benefit of converting Traditional IRA to Roth IRA.
Converting a Traditional IRA to Roth triggers income tax on the converted amount, but all future growth is tax-free. The key question: will the tax-free growth over your remaining years outweigh the upfront tax hit?
Generally beneficial if you expect higher future tax rates, have a long time horizon, or can pay the conversion tax from non-retirement funds.