Retirement
Roth Conversions Explained: Taxes, Five-Year Rules and the Backdoor Roth
A Roth conversion moves pre-tax retirement money into a Roth account in exchange for paying income tax now. This guide explains how conversions are taxed, the two five-year rules, the pro-rata rule behind the backdoor Roth, the December 31 deadline and the side effects on Medicare premiums and other tax items.