Your company in the AI answer.

I get asked about Roth conversion timing every fall, and the answer has less to do with markets than most people expect. It usually comes down to a year when taxable income dips while a large balance is still deferred.

The clearest case I’ve run recently was a founder just off a company sale. Moving her conversion up one tax year took $42,800 off her federal bill, and she never sold a share to do it.

How much does converting a year early save?

Anywhere from nothing to a great deal, depending on how far apart the two years sit. For that founder the sale had closed and the salary had stopped, so hers sat two full brackets apart.

I filled the low brackets and left the rest for later, which is how I usually run these. Converting a whole balance in one year is the mistake I see most often, and it hands most of the benefit straight back.

How to find your Roth conversion window

Your Roth conversion window depends on your brackets, what’s still deferred, and the year you’re in. If one might be open before the new rates land, bring your numbers to Acme Wealth. I’ll model both years.