I'm 63, a retired CPA with a $1.2 million 401(k). Do I need to bother with a Roth conversion?
MarketWatch
β’Sat, 15 Aug 2026 20:00:00 GMT
π° What Happened
A 63-year-old retired accountant asks whether they need to do a Roth conversion. A Roth conversion moves money from a traditional 401(k) into a Roth account. The question focuses on a $1.2 million 401(k). MarketWatch experts try to answer whether it is worth the effort. The answer depends on taxes and the person's future plans.
π The Backstory
A 401(k) is a retirement savings account with tax benefits. Traditional accounts let money grow tax-free until you withdraw it, but then you pay tax. A Roth account is different: you pay tax now on the money, but withdrawals later are tax-free. Converting can make sense if you expect to be in a higher tax bracket later. But it means paying taxes upfront on a large amount. A person with $1.2 million must weigh this carefully. MarketWatch often answers reader tax and money questions.
π― Why It Matters
Roth conversions affect how much tax retirees pay and how much money they keep. This decision matters to many people planning for retirement.
A 63-year-old retired accountant asks whether they need to do a Roth conversion. A Roth conversion moves money from a traditional 401(k) into a Roth account. The question focuses on a $1.2 million 401(k). MarketWatch experts try to answer whether it is worth the effort. The answer depends on taxes and the person's future plans.
A 401(k) is a retirement savings account with tax benefits. Traditional accounts let money grow tax-free until you withdraw it, but then you pay tax. A Roth account is different: you pay tax now on the money, but withdrawals later are tax-free. Converting can make sense if you expect to be in a higher tax bracket later. But it means paying taxes upfront on a large amount. A person with $1.2 million must weigh this carefully. MarketWatch often answers reader tax and money questions.
Roth conversions affect how much tax retirees pay and how much money they keep. This decision matters to many people planning for retirement.