Roth conversions in retirement: the 2026 guide
Every guide on converting traditional IRA money to a Roth IRA, with the 2026 figures and their sources.
Monte Climb2 min readA Roth conversion moves money from a traditional IRA into a Roth IRA. You pay income tax on the amount now, and in return qualified withdrawals later can come out tax-free. This guide collects our articles on the topic and is for anyone weighing that trade in retirement or in the years just before it. It covers questions that come up again and again: how much to convert in a given year, how a conversion can affect Medicare premiums and the ACA premium credit, and why the stretch before required minimum distributions often gets attention as a window for converting.
The 2026 figures
| IRA contribution limit (2026) | $7,500, plus $1,100 at 50 or older 1 |
| 401(k) employee limit (2026) | $24,500, plus $8,000 at 50+ ($11,250 at 60–63) 1 |
| First Medicare IRMAA bracket (MAGI, single / joint) | $109,000 / $218,000; a conversion counts two years later 2 |
| ACA premium credit ends (2026 coverage, 1 / 2 people) | $62,600 / $84,600 of MAGI 3 |
| Net investment income tax | 3.8% above $200,000 / $250,000 of MAGI 4 |
What this guide answers
- How much should be converted each year?
- How does a conversion change Medicare premiums?
- Can a conversion cost the ACA premium credit?
- Which years before RMDs are the cheap ones?
What this means for your plan
A conversion is never a decision on its own. It affects taxable income, and that income connects to healthcare costs, premium credits, future required withdrawals and the money you leave to your heirs. A choice that looks cheap this year can cost more later, and the reverse can happen too. That's why conversions are easiest to judge as part of a whole plan, looking at many years together. Monte Climb runs these rules on your own plan so you can see how different conversion amounts play out over time.
Sources
- IRS Notice 2025-67: the 2026 contribution, QCD and QLAC limits
- CMS, "2026 Medicare Parts A & B Premiums and Deductibles": the Part B premium and the IRMAA brackets (a two-year lookback on income)
- IRC §36B(c)(1)(A) (the premium credit ends at 400% of the poverty line) with the HHS 2025 poverty guidelines, which set 2026 coverage
- IRC §1411: the net investment income tax (thresholds set by statute, not indexed)
Figures read by code from Monte Climb's 2026 tables. General information, not advice.
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