{
  "id": 8433518,
  "title": "Should I Convert 10% of My 401(k) to a Roth IRA Each Year to Reduce Taxes and RMDs?",
  "url": "https://urgent.news/2026/09/18/should-i-convert-10-of-my-401-k-to-a-roth-ira-each-year-to-reduce",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T09:00:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/news/wise-convert-10-401-k-113000206.html"
  },
  "original_language": "en",
  "account": "A Roth IRA offers tax-free growth and no required minimum distributions (RMDs). However, converting assets comes with a cost: you pay income taxes on the full value of the conversion. For instance, converting $100,000 from a 401(k) to a Roth IRA raises your taxable income by that amount, requiring cash to pay the resulting tax increase.\n\nConverting 10% of a 401(k) annually could help manage taxes, but it does not completely avoid them. While Roth withdrawals in retirement are tax-free and help heirs avoid taxes, the upfront tax payment is significant. Assets must remain in a Roth IRA for five years before withdrawals, which can be problematic for those nearing retirement.\n\nConverting a 401(k) to a Roth IRA eliminates RMDs, as Roth withdrawals are tax-free. However, the decision to convert depends on individual circumstances. Staggering conversions can help keep annual income in lower tax brackets, minimizing the tax impact. Consulting a financial advisor is recommended to tailor the strategy to specific needs and goals.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}