The rules governing Roth conversions in 2026 are specific and unforgiving. Here is what you must know before you convert.
What are the key Roth conversion rules in 2026?
Several rules define the landscape. There is no income limit and no dollar cap on conversions, so anyone can convert any amount. The full pre-tax amount converted is taxed as ordinary income in the conversion year. Conversions are irreversible: recharacterization of a conversion has not been allowed since 2018, so you cannot undo a conversion if markets fall or your tax picture changes. Each conversion starts its own five-year clock for penalty-free access to that principal under age 59 1/2. And the pro-rata rule taxes conversions proportionally if you hold any pre-tax IRA money.
How do 2026 limits and Medicare interact with conversions?
While conversions themselves are uncapped, the 2026 Roth contribution limit is $7,500, or $8,600 at age 50 plus, and direct Roth contributions phase out above $153,000 single and $242,000 married filing jointly. Conversions sit on top of all your other income, so they can push you into higher brackets, trigger Medicare IRMAA surcharges on Part B and Part D two years later, and raise Social Security taxation. RMDs starting at age 73 or 75 cannot themselves be converted. To navigate the Medicare side, call 1-800-MEDIGAP at 1-800-633-4427, then confirm tax specifics with your advisor.