Guide
What are the Roth conversion rules for 2026?
By Secure Retirement PlannerUpdated
If you convert in 2026, you can move any amount from your traditional IRA or 401(k) to a Roth IRA. There is no income limit. Your conversion must be done by December 31, 2026. It is taxed as your 2026 income, and you can't undo it.
If you owe a required minimum distribution (RMD) this year, you must take it first. If any of your IRA money was already taxed, the pro-rata rule decides how much of your conversion is taxable.
This page lists each rule, where the IRS says it, and the traps that catch people. It also shows you the pro-rata rule with real numbers, since that one surprises many savers.
How we're paid: this guide is free and educational, not tax advice. If you ask for an estimate, a licensed professional may contact you and may earn a commission if you choose to buy an insurance product. Details
The short version
- No income limit and no dollar limit. The only real limit is the tax you're willing to pay.
- Your conversion counts for the year the money leaves your traditional account.
- You can't convert an RMD. Take it first, then convert.
- If you have after-tax money in any IRA, you can't convert just that part. The IRS prorates across all your IRAs.
- You can't convert an IRA you inherited from anyone other than your spouse.
What are the main Roth conversion rules?
These rules apply to you if you convert in 2026, in almost every case. Each comes from IRS Publication 590-A or 590-B unless noted.
| Rule | What it means for you |
|---|---|
| Who can convert | Anyone with a traditional, SEP or SIMPLE IRA, or an eligible workplace plan. No earned income needed. |
| Income limit | None. Income limits apply to Roth contributions, not conversions. |
| Dollar limit | None. You can convert any part or all of an account. |
| Deadline | December 31 of the tax year. No April extension. |
| How it's taxed | As ordinary income for the year, except any after-tax money (basis). |
| 10% early withdrawal penalty | Doesn't apply to the conversion itself if the full amount reaches the Roth. |
| Undoing it | Not allowed for conversions made in 2018 or later. |
| Required minimum distributions | The RMD for the year can't be converted. It must come out first. |
| One rollover per year | Doesn't apply. You can do as many conversions as you like in a year. |
| 5-year rules | Each conversion has its own 5-year clock for the penalty if you're under 59½. |
Do I have to take my RMD before I convert?
Yes. The IRS says you can't convert amounts that must be distributed from your IRA for a year. That includes the year you turn 73. So your RMD comes out first and gets taxed as income. You can convert only the money above it.
If your first RMD is for the year you turn 73, it is your December 31 balance from the year before divided by 26.5. On a $500,000 IRA that is about $18,868. Use RMD calculator to find yours.
Your RMDs start at 73 if you were born 1951 to 1959, and at 75 if you were born in 1960 or later. That is why you may want to convert in the years before your RMDs begin.
What is the pro-rata rule for Roth conversions?
If you ever put after-tax money into an IRA (nondeductible contributions), you have basis. That part was already taxed, so you aren't taxed on it again. But you can't pick only your after-tax dollars to convert.
The IRS adds up all your traditional, SEP and SIMPLE IRAs as if they were one account. It uses your December 31 value, plus what you converted or withdrew during the year. Your basis is spread evenly over that total. So each dollar you convert is partly taxable and partly tax-free. You figure this on Form 8606.
Your money in a 401(k), 403(b) or other workplace plan is not part of this IRA math. Your Roth IRAs don't count either.
Lost track of your basis?
Your basis should appear on the last Form 8606 you filed. If you made nondeductible contributions and never filed one, ask a tax professional before you convert. Without it you may pay tax twice on the same money.
Can I convert a 401(k), 403(b) or inherited IRA?
Workplace plans: yes, usually after you leave the job, by a direct rollover from your plan to a Roth IRA. Some plans also let you convert inside the plan while you work there. The details differ by plan, so see 401(k) to Roth IRA.
Inherited IRAs: if you inherited a traditional IRA from anyone other than your spouse, you can't convert it. The IRS doesn't allow rollovers into or out of that kind of inherited IRA. If you are a surviving spouse, you can treat the IRA as your own and then convert.
SIMPLE IRAs: you can convert once two years have passed since you first joined your employer's SIMPLE plan.
How do the 60-day rule and tax withholding work?
The IRS gives you three ways to convert. You can use a direct transfer between firms or a transfer at the same firm. Or the firm can pay you a check that you deposit into a Roth within 60 days. The first two are safer for you because there is no deadline to miss.
IRA firms withhold 10% for federal tax by default on a withdrawal, but you can choose 0% on Form W-4R. If your workplace plan pays the money to you, it must withhold 20%. A direct rollover from your plan to the Roth has no withholding.
If you're under 59½, any tax withheld is a withdrawal that didn't reach your Roth. It is taxable and can also owe the 10% penalty. Paying the tax from your savings avoids that.
Which 5-year rules and tax forms apply to conversions?
You have two 5-year clocks. One decides when your Roth earnings are tax-free. The other applies a 10% penalty if you're under 59½ and take out converted money within five years. Our page on The 5-year rules explains both with examples.
For tax forms, your IRA firm sends you Form 1099-R in January. You report a conversion from an IRA on Form 8606, Part II. The total and taxable amounts go on your Form 1040. Keep every Form 8606 you file. It is your record of basis.
Example: the pro-rata rule on a $20,000 conversion
Margaret is 62. Years ago she made $10,000 of nondeductible (after-tax) IRA contributions and filed Form 8606 each time. She converts $20,000 in 2026. On December 31, 2026, her traditional IRAs are worth $80,000.
The IRS adds the year-end value and the conversion: $80,000 plus $20,000 is $100,000. Her $10,000 basis is 10% of that. So 10% of the conversion, $2,000, is tax-free and $18,000 is taxable. If she's in the 22% bracket, the conversion adds about $3,960 in federal tax.
She carries the remaining $8,000 of basis forward to future years on Form 8606.
If you ever made after-tax IRA contributions, part of your conversion will be tax-free, but you can't choose which part. Find your old Form 8606 before you convert so you don't pay tax twice.
| Step | Amount |
|---|---|
| Value of all traditional IRAs on Dec 31, 2026 | $80,000 |
| Plus amount converted in 2026 | $20,000 |
| Total | $100,000 |
| Basis (after-tax money) | $10,000 (10% of total) |
| Tax-free part of conversion | $2,000 |
| Taxable part of conversion | $18,000 |
| Federal tax at 22% | about $3,960 |
| Basis left for later years | $8,000 |
Hypothetical example following the Form 8606 method. It assumes no other IRA withdrawals in 2026, a 22% federal bracket for the whole taxable amount, and no state tax. Your numbers will differ.
Common questions
Is there a limit to how much I can convert to a Roth?
No. There is no dollar limit. A large conversion just adds a lot of income in one year, which can push you into a higher bracket and raise your Medicare premiums.
Can I do more than one Roth conversion in a year?
Yes. The one-rollover-per-year rule doesn't apply to conversions. Each of your conversions is added to that year's income.
Can I convert just the after-tax money in my IRA?
No. The pro-rata rule spreads your after-tax basis across all your traditional, SEP and SIMPLE IRAs, so each conversion is partly taxable.
Can I convert an inherited IRA to a Roth?
Not if you inherited it from someone other than your spouse. If you inherited it from your spouse, you can treat it as your own and then convert it.
Can I convert stock or funds without selling them?
Usually yes. The IRS requires the same property that left the traditional IRA to go into the Roth. Most firms can move shares directly, valued on the conversion date.
Does a Roth conversion count as a contribution?
No. It doesn't use up your yearly Roth contribution limit, and the contribution income limits don't apply.
What happens if I miss the 60-day deadline?
Your money is treated as a regular taxable withdrawal and can't go into the Roth. The IRS waives the deadline only in limited cases. A direct transfer avoids the risk.
Sources
Facts on this page were last checked on November 9, 2026.
- IRS Publication 590-A (2025), Contributions to IRAs · Conversion methods, 60-day rule, RMDs can't be converted, one-rollover-per-year exemption, inherited IRAs, SIMPLE 2-year rule, no recharacterization. Read Nov 9, 2026.
- IRS Publication 590-B (2025), Distributions from IRAs · Basis and partly taxable distributions, Uniform Lifetime Table divisor 26.5 at 73, conversion 5-year penalty rule. Read Nov 9, 2026.
- IRS Instructions for Form 8606 (2025) · Part II for conversions; line 6 uses the December 31 value of all traditional, SEP and SIMPLE IRAs. Read Nov 9, 2026.
- IRS Form W-4R (2026) · 10% default withholding on IRA withdrawals (0% allowed) and 20% on eligible rollover distributions paid to you. Read Nov 9, 2026.
- 26 U.S.C. 401(a)(9)(C)(v), applicable age for RMDs · RMDs start at 73, or 75 for people who reach 74 after 2032 (born 1960 or later). Read Nov 9, 2026.
Who wrote this
This guide was written and fact-checked by the Secure Retirement Planner editorial team using IRS, CMS and Social Security sources listed above. We update guides when the law or yearly limits change. How we research.