Converting to IRA into a Roth IRA could come with a significant tax bill, but the key to lowering the tax bill is timing.

You might want to convert all of your savings to a Roth in one go, but you could end up paying hundreds of thousands more in taxes than you have to.

An IRA or 401 (k) rollover is one of those bumps in the road. A number of events can arise that make a rollover necessary, from job termination to plan dissolution to retirement. In each case, factors should be considered to ensure momentum is retained and costly penalties are avoided.

Converting a large sum like $865,000 to a Roth IRA is a strategic move for long-term tax benefits – including tax-free retirement income and eliminating required minimum distributions (RMDs) – but it often comes with a hefty upfront tax bill.

Consider your current tax bracket, future tax rate projections and the benefits of tax-free withdrawals in retirement

The right answer varies by individual, but here are three signs a Roth IRA could be your best option in 2025. The main advantage of Roth IRAs is that you get tax-free withdrawals in retirement, as long as you're at least 59 1/2 years old and have had the account for at least five years.

Converting money from a tax-deferred retirement account to a Roth IRA can cause Medicare premiums for Part B and Part D to increase – in some cases dramatically – because Medicare premiums are tied to income brackets.

A Roth IRA, 401(k), and Social Security benefits can work together seamlessly to secure your retirement. Strategic planning helps minimize taxes and maximize income.

Converting IRA funds to a Roth account sooner rather than later can be useful, especially if you're currently in a favorable tax bracket.  By converting to Roth accounts now, your investments can continue to grow tax-free for a long period.