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401(k) to Roth IRA Conversion

Make sure you understand these rules before converting your retirement savings.

By Kailey HagenUpdated May 21, 2025 at 2:08 PM

Key Points

  • 401(k) to Roth IRA conversions allow for tax-free retirement withdrawals, but taxes apply in the year of the conversion.
  • There's no limit to how much you can convert in a given year; mindful planning can minimize the tax impact.
  • Roth IRA conversion ladders can give you early access to funds without a tax penalty.

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