Rethinking Roth Conversions After the 2025 Tax Bill

NEW ISSUES AND POTENTIAL HEADWINDS

BY ROBERT S. KEEBLER, CPA/PFS, MST, AEP (DISTINGUISHED)

Roth conversions remain a core strategy in retirement and tax planning, but recently enacted tax law has introduced new variables that advisors must carefully model. Changes such as the new senior deduction and the expanded—but phased—state and local tax (SALT) deduction can materially alter the tax impact of a conversion, sometimes in unexpected ways.

This article examines how these provisions affect marginal tax rates, highlights new threshold risks, and outlines planning considerations to help advisors determine when Roth conversions still make sense—and when they may not.