• Taxpayer expects to be in a higher tax bracket during retirement than at the time of conversion.
• Taxpayer has made significant after-tax contributions to his or her Traditional IRA.
• Taxpayer will pay the tax upon conversion with funds from outside the IRA.
• Taxpayer will not need the IRA funds during retirement and would like to pass them on to heirs.
• Taxpayer expects his or her estate will be subject to federal estate taxes.
• Roth conversion will not trigger a tax on the social security benefits.
• Taxpayer will be able to lower their taxable income in the year of conversion.

Factors Against Conversion

• Taxpayer expects to be in a lower tax bracket during retirement.
• Significant state income taxes will be due upon conversion (of course federal taxes may be due as well).
• Taxpayer has only made pre-tax contributions to his or her Traditional IRA.
• Taxpayer will pay the tax from the IRA funds.
• Significant fees and surrender charges will be incurred upon conversion.
• Conversion will trigger a tax on social security benefits.
• Taxpayer needs to sell appreciated assets in order to pay tax upon conversion.
• Taxpayer who has a child in college and whose financial aid would be negatively impacted by conversion.