Timing Roth Conversions: Should You Convert at the Start of the Year? End? Or, Spread Them Out?
Roth conversions are one of the most effective planning strategies for managing taxes over your lifetime. When used thoughtfully, they can reduce future tax risk, increase flexibility in retirement, and help smooth income across different phases of life.
Once you’ve decided that Roth conversions may make sense for your situation, the next question is almost always about timing. Should conversions happen early in the year, later in the year, or be spread out over time? Below, we’ll break down the pros and cons of each approach to help you make more informed planning decisions.
Is an Early-Year Roth Conversion the Right Move?
Moving forward with a Roth conversion early in the year can be appealing, especially for people who value decisiveness or expect a relatively low-income year. There are real advantages to acting early, but there are also tradeoffs that deserve careful consideration.
Pro: More time for potential tax-free growth
Assets converted early in the year have more time to grow inside a Roth account. If markets perform well, that growth occurs in a tax-exempt account rather than a tax-deferred one, which can amplify the long-term benefit of the conversion.
This can be especially relevant from an asset location perspective. You may choose to invest more aggressively (think: stocks) in Roth accounts, while holding more conservative assets in tax-deferred accounts. Since qualified Roth withdrawals are never taxed and these accounts are not subject to Required Minimum Distributions (RMDs), higher-growth assets can compound longer without tax drag or forced withdrawals.
That said, this benefit is not guaranteed. It depends on how markets actually perform and how assets are invested after the conversion. If markets decline or returns are similar across accounts, the advantage of converting earlier in the year may be limited or may not materialize at all.
Pro: Simplicity and momentum
Early-year Roth conversions allow you to make a clear decision and move on. If your income is stable and predictable, converting early can feel efficient rather than dragging the decision out all year. Handling the conversion before the year fills up with other tax planning, investment decisions, and life, in general, can make the process feel more manageable and intentional.
This approach can also work well in years where income is clearly lower than normal, such as after retiring but before other income sources begin, like Social Security.
Con: Income uncertainty early in the year
At the beginning of the year, you may still be working with estimates for your total income. Bonuses, consulting income, dividends, capital gains, or unexpected events can all increase your taxable income later in the year.
If income ends up higher than expected, an early conversion that initially seemed reasonable can have cascading effects. It may push your ordinary income into a higher tax bracket, convert otherwise 0% long-term capital gains into 15%, reduce or eliminate ACA premium subsidies, or trigger higher Medicare premiums (IRMAA) two years later.
Once a conversion is complete, it cannot be retroactively adjusted. That means early decisions made with incomplete information can lock in outcomes you were specifically trying to avoid.
Con: Less flexibility if markets move during the year
When you convert earlier in the year, you are committing to a decision before you know how markets will perform over the rest of the year. If markets decline later, you may wish you had waited and converted at lower values, but once the conversion is complete, it cannot be changed.
Waiting until later in the year preserves flexibility. You can see how markets actually performed and decide whether to convert the same amount, more, or less based on what happened rather than what you expected.
This does not mean early conversions are wrong. It simply means they trade flexibility for decisiveness, which may or may not align with how you prefer to plan.
Should You Wait Until Later in the Year to Convert?
Just as there are reasons to convert early, there are also compelling reasons to wait. Year-end Roth conversions tend to appeal to people who value precision and prefer making decisions with as much information as possible.
Pro: Greater clarity on your full-year income
By later in the year, you typically have a much clearer picture of your actual income. Wages, bonuses, dividends, interest, capital gains, and other taxable events are no longer estimates but known numbers.
This clarity reduces reliance on assumptions and guesswork. Instead of planning around projections for the year, you are making decisions based on what actually occurred.
For you, this can significantly reduce the risk of surprises tied to income volatility, year-end capital gain distributions, and other taxable income events.
Pro: Better control over tax brackets and income thresholds
With full-year income known, you can be much more precise in how you size a Roth conversion. Waiting until later in the year allows you to convert “just enough” to fill a desired tax bracket without unintentionally spilling into the next one.
This precision is especially useful when managing income-based thresholds, such as Medicare IRMAA levels. Because these thresholds are determined by total annual income, having complete information allows you to execute the conversion with intent rather than caution.
For many, this ability to fine-tune outcomes is the primary appeal of year-end conversions.
Con: Year-end decision pressure
Waiting until late in the year can compress decision-making into a short window. This can feel stressful if conversions are treated as a last-minute task alongside other year-end planning activities.
Late-year conversions work best when they are intentional and planned for, not rushed. If you prefer to space decisions out over time, this added pressure may feel like a meaningful drawback.
Con: Risk of deferring the decision altogether
For some, waiting until later in the year increases the risk that the conversion gets delayed or never happens at all. As the year fills up with other priorities, even well-intentioned plans can get pushed aside.
This isn’t a tax issue or a market issue. It’s an execution issue. Life tends to get busier later in the year with holidays, travel, work deadlines, and year-end planning competing for attention. What starts as a “we’ll do this in December” plan can quietly turn into no conversion at all.
In those cases, acting earlier, even imperfectly, may be better than waiting for a “perfect” moment that never arrives.
Splitting or Staging Roth Conversions Throughout the Year
Roth conversions do not have to happen all at once in any given year. You may also consider a staged approach that spreads conversions across the year.
This is conceptually similar to dollar-cost averaging in investing. Rather than committing everything at a single point in time, you are spreading decisions out, which can help reduce the pressure of getting the timing exactly right.
Pro: Flexibility without committing all at once
A staged approach allows you to convert part of your planned amount earlier in the year and leave room to adjust later. That flexibility lets you respond as income and market conditions become clearer, rather than committing everything at a single point in time.
If markets rise, some assets are already in the Roth. If markets fall, later conversions may occur at lower values. This approach doesn’t eliminate uncertainty, but it spreads it out, which you may find more comfortable than making one large decision all at once.
A staged approach is less about predicting markets and more about structuring decisions so no single choice carries all the weight.
Con: More moving pieces to manage
However, splitting conversions throughout the year requires more tracking and follow-through.
You need to keep an eye on how much has already been converted, how much room remains in your target tax bracket, and whether any new income changes the math along the way. This approach can also create more decision points. Instead of making one clear choice, you are revisiting the decision multiple times as the year unfolds, which can add mental overhead.
If you prefer simplicity over ongoing adjustments, this added complexity may feel more draining than empowering.
Additional Consideration: Coordinating tax payments
Multiple Roth conversions throughout the year can also add complexity around how and when the taxes are paid.
It’s often recommended to use cash from outside retirement accounts to cover the tax on a conversion, rather than withholding taxes directly from the converted amount, in order to keep more money growing inside the Roth. When conversions are spread throughout the year, you may need to think more deliberately about cash flow, withholding adjustments, or estimated tax payments to stay on track and avoid surprises. For some, this coordination can feel like a project of its own.
If managing tax payments feels burdensome, a single, well-planned conversion may be easier to execute than several smaller ones, even if it offers less flexibility.
How to Model Roth Conversion Timing in the Boldin Planner
If you’re unsure which timing approach works best for you, you can test different strategies directly in the Boldin Planner. Modeling removes guesswork and replaces it with real numbers based on your plan.
To model a Roth conversion in your plan, go to My Plan > Money Flows > Transfers and add a new Transfer. Set up a future transfer from one of your tax-deferred accounts to a Roth account. If you don’t already have a Roth IRA in your plan, you can simply add one with a $0 balance.
From there, you can choose the month you want the conversion to occur. For example, you might select January or February for an early-year conversion, or November or December if you’re modeling a year-end conversion. You could also model several Roth conversions throughout the year, rather than committing to a single conversion date.
What’s the Best Roth Conversion Timing? Focus on the Plan, Not the Calendar
There is no universally correct month to do a Roth conversion.
Whether you convert early in the year, later in the year, or in stages throughout the year, the key is making the decision intentionally as part of your overall financial planning. When conversions are planned alongside your income, taxes, and long-term goals, small timing differences tend to matter far less than you might expect.
The right Roth conversion approach is the one that helps you stay confident, informed, and aligned with your plan year after year.
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