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7 Reasons NOT to Convert to a Roth IRA

By Chris Duderstadt

December 1, 2025

7 Reasons NOT to Convert to a Roth IRA

Key Points – 7 Reasons NOT to Convert to a Roth IRA

  • Do the Potential Unintended Consequences of Roth Conversions Outweigh the Potential Advantages?
  • Roth Conversion Decisions Aren’t All About You
  • Why Timing of Roth Conversions Matter
  • 3-Minute Read | 25-Minute Watch

To Roth or Not to Roth? That Is the Question

We’ve published a lot of content that highlights how Roth conversions can be a helpful tax planning strategy for someone who is preparing for or going through retirement. People may benefit from hearing about Roth IRAs, that they grow tax-free, and that withdrawals are tax-free for you and your beneficiaries.  However, it’s important to understand that Roth conversions might not always make sense depending on your situation. Let’s highlight a few reasons NOT to convert to a Roth IRA.

1. The Math Says You Don’t Need To

What if your best friend just did a Roth conversion analysis and told you that they plan to do a Roth conversion before the end of the year and that you should too. Well, just like with many other aspects of financial planning, Roth conversion decisions shouldn’t be based on rules of thumb.

There may be instances in which a Roth conversion analysis shows that a Roth conversion doesn’t make sense for your specific situation in the long-term. For example, did you know that converting to a Roth IRA can potentially bump you into a higher Medicare bracket? This is what’s referred to as the Medicare Income-Related Monthly Adjustment Amount—aka, the IRMAA tax. It’s a special tax that can increase the amount of your Medicare Part B premiums if you exceed certain income limits.

There’s a two-year lookback with IRMAA. So, in 2026 it’s actually based off your Modified Adjusted Gross Income from 2024. Click here to see the 2026 IRMAA brackets.1 Make sure you’re aware of where you land within the IRMAA brackets before considering a Roth conversion. Having to pay a substantial amount more in Medicare premiums following a Roth conversion might be a reason not to convert to a Roth IRA. Sometimes, the math just doesn’t make sense to do a Roth conversion.

2. Your IRA Beneficiary Is a Charity

Leaving a tax-free inheritance to your loved ones is a reason why many people consider Roth conversions. But what if you plan to leave your inheritance to a charitable organization? If that’s the case, remember that qualified charities can withdraw funds from your traditional IRA tax-free. Also, giving to charity directly from your IRA can help with reducing Required Minimum Distributions.

Check out some of our recent charitable giving content below.

3. Your Surviving Spouse Won’t Face Higher Taxes

The decision of whether to do a Roth conversion isn’t all about you. If you’re married, have you thought about how you or your spouse’s tax situation will change with being a single filer after one of you passes away?

There are instances in which Roth conversions may help protect a surviving spouse from higher taxes. However, if the surviving spouse’s tax situation won’t change much, Roth conversions might not be necessary. Again, the math might say you don’t need to do Roth conversions, and you don’t want to be subject to any of the unintended potential consequences of Roth conversions.

4. You’re Charitably Inclined and Use QCDs

This ties into Reason No. 2 of reasons NOT to convert to a Roth IRA. Once you attain age 70½, you’re eligible to make Qualified Charitable Distributions (QCDs). Via QCDs, you can donate to a qualified charity directly from your IRA without it showing up on your tax return. So, if you plan to give to charity and are considering Roth conversions, make sure you leave enough money in your IRA for charitable donations rather than converting too much and missing out on the tax advantage of charitable giving strategies such as QCDs.

5. Your Heirs Are in Low Tax Brackets

Again, the decision of whether to do Roth conversions isn’t all about you. What about your beneficiaries? If they’re in low tax brackets and will inherit your IRA, ask yourself these questions.

  • Can my beneficiaries inherit my IRA and empty the account within the SECURE Act’s 10-year payout window without it significantly impacting their tax liability?
  • If so, should I leave them as beneficiaries of my IRA and not convert (so that I’m also not paying additional tax upfront on the conversion)?

6. You’re Retiring Soon and Expect a Lower Tax Rate

Whenever you’re considering a Roth conversion, you need to assess whether your future tax rate will be higher or lower than it is now. If you’re nearing retirement and expect to have lower income in the future, you may want to consider waiting to do Roth conversions. There may be a window early in retirement for you to do Roth conversions at lower tax rates. This factors in when you plan on claiming Social Security as well.

7. You’re Moving to a Lower or No-Tax State

Do you live in a high-tax state currently but plan to move to a state with no income tax? You may want to wait to do Roth conversions until after you move. This is yet another reason why the timing of Roth conversions can make a big difference.

To Convert or Not to Convert? That Is Still the Question

Whether or not it makes sense for you to do Roth conversions depends on many different factors. It may not make sense now, but that could change. It’s important to review Roth conversions as a part of your forward-looking tax strategy with a team of professionals, including a CPA or other tax professional, on an annual basis.

At Modern Wealth, our tax professionals work with our financial planners to review tax planning opportunities for our clients. It’s an important component of our financial planning process as we strive to help people enjoy today while preparing for tomorrow — all while helping to connect them with the people and causes they care about most. Start a conversation with our team below, and we’ll be happy to help you with Roth conversion analysis and much more.

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Resources Mentioned in This Article

Other Sources

[1] https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles

Investment advisory services offered through Modern Wealth Management, Inc., a Registered Investment Adviser.

The views expressed represent the opinion of Modern Wealth Management a Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Modern Wealth Management does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.