Fidelity’s Roth Conversion Tips

May 20, 2026 — Frequent visitors to this site might remember one of your Editor’s top regrets in retirement – failing to put more money into Roth IRA’s and 401(k) Roths. By putting more of my contributions into regular (non Roth) retirement accounts, I set myself up for having to take sizable Required Minimum Distributions (RMDs), all taxable income, starting in my 70’s. Those pushed up my tax bracket, along with much higher Medicare Part B premiums.

Fidelity recently put out a very helpful primer on Roth conversions – 4 Back Doors to a Roth Conversion.

The problem for higher income taxpayers is that are limits that shut them out of contributing to Roths. Married couples filing jointly with a modified adjusted gross income of $252,000 or more cannot direct contributions. But Fidelity’s suggestions can help overcome that.

The Roth Advantage

Regular IRAs and 401(k)s have an immediate tax advantage; contributions to those accounts reduce your taxable income in the year you make them. But you must take RMDs once you hit the age of 73. Then all of the deposits and your investment returns count as ordinary income. Funds in your Roth accounts, on the other hand, can be withdrawn (after retirement age) with no impact on taxes. That includes all the investment increases you might have had over the life of your account – 50 or more years for some people. Your heirs share this advantage too – they will be subject to RMDs, but none of that money is taxable.

Fidelity’s Roth Suggestions

Contribute within an employer sponsored 401(k). These are not subject to income limits.

Convert an existing IRA to a Roth. There are no limits to how much you can convert, but the funds you transfer will count as taxable income. Fidelity has suggestions on how you can help mitigate that.

Back Door Roth. Make a non-tax deductible contribution to an IRA. Then convert that to a Roth. If you do it before that money has big investment gains, you probably won’t have a negative tax impact.

A mega Back Door Roth. This complicated maneuver leverages the much higher contribution ceilings of a 401(k) plan. In it you make after-tax contributions beyond the standard pre-tax and Roth limits, then convert those dollars to a Roth account.

For more information go the Fidelity Back Door Roth piece.