← Back to Documentation
Roth Conversion
Glossary · Tax Concepts
Definition
Moving money from a pre-tax retirement account to Roth. The converted amount is generally taxed as ordinary income in the conversion year.
Converting $50k from a traditional IRA adds $50k to this year's taxable income, but the money grows tax-free from then on.
Terms are defined in the context of how ArthaPilot uses them. For authoritative definitions, consult the SEC, IRS, or a qualified financial advisor.