Part 2: Who Should Not Convert To A Roth IRA

September 14, 2026

Monday, September 14, 2026 

By Andy Ives, CFP®, AIF® IRA Analyst

 In our August 31, 2026, Slott Report entry, we offered a list of situations where Roth conversion could make sense. In that article, we also said that a Roth conversion is not for everyone. Conversion is NOT a universally beneficial transaction, so each scenario must be evaluated individually. We all have different opinions and financial goals. While a Roth conversion could make sense for one person, it might not be the best way forward for another. To help with the decision, here is a list of situations where a Roth conversion may not be the ideal way forward.

 1. Seniors who need the money. A Roth conversion of either an IRA or workplace plan will generate an increased tax bill for the year of the conversion. Anyone living on a fixed income must be careful when adding to their expense list. No one should go broke converting if the funds needed to live on must be sent to the IRS to cover the elevated tax bill.

 2. Those who believe they will be in a much lower tax bracket in retirement. Why convert at a higher tax bracket when you know you will be taking distributions in the future at a lower bracket? Sure, the earnings would be tax-free after a conversion, but the long-term tax impact of a conversion must always be considered.

 3. Those who just cannot bring themselves to pay the tax now. Delaying taxes for as long as possible is the mindset of many people. A Roth conversion flies in the face of that belief. A Roth conversion increases ordinary income for the year of the conversion, potentially causing the loss of valuable tax credits and deductions, taxation of Social Security, and increased IRMAA surcharges. While this only happens for the year of the conversion, such an expedited route to a higher tax bill (and the potential collateral consequences) is a bridge too far for some.

4. Those who do not have non-retirement assets to pay the tax on the conversion. We believe that it is typically best to pay the taxes due on a Roth conversion from another source of funds (as opposed to having taxes withheld from the IRA on the conversion). Having taxes withheld from the IRA leaves less funds available for tax-free accumulation. Also, it’s important to note that IRA owners under age 59½ should almost never have the taxes withheld from the IRA on a conversion. Why? Taxes withheld are a withdrawal and are not part of the conversion. For a person under 59½, this is an early withdrawal, and there would be a 10% penalty on the tax dollars that are being sent to the IRS!

5. Anyone who asks how soon they can take the money out. This is a red flag. If a person needs the money immediately, why convert to a Roth? Anyone over 59½ will have immediate access to the converted funds, but for those under 59½, there is a 5-year wait before converted dollars can be withdrawn without penalty (assuming no exception applies).

 6. Those who have a charity named as their IRA beneficiary. Charities do not have to pay income tax when they inherit a traditional IRA, so why would the IRA owner want to pay the income tax on a Roth conversion? Charities don’t care if they receive a traditional IRA or a Roth IRA. From a tax perspective, it’s all the same to them.

 7. Anyone receiving financial aid based on income. An income spike could disqualify a person from whatever financial aid they may be depending on. A Roth conversion could push them over the eligibility threshold for receiving that aid.

 Copyright © 2026, Ed Slott and Company, LLC Reprinted from The Slott Report, [September 14, 2026], with permission [https://irahelp.com/part-2-who-should-not-convert-to-a-roth-ira/] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

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