There are multiple considerations relevant to the conversion of a Traditional IRA to a Roth IRA, Most importantly, the tax paid on the conversion will reduce the amount of your retirement savings immediately and therefore the amount of earnings on those reduced savings in the future. Accelerating the tax on retirement accounts generally only makes sense if the income from conversion will be taxed today at a lower rate than distributions will be taxed in the future. This is not often the case with retirees who will ultimately have their conservatively invested IRA account balances distributed to themselves rather than their children or other beneficiaries after their death.
Also, when considering the tax rate at which IRA distributions will be taxed now versus the future, the marginal tax rate in 2024 for joint filers with taxable income above $94,301is 22%.
