Great questions!
As of April 2024, there is no limit to the amount of money that can be converted from tax-deferred savings to a Roth IRA in a single year. This is different from the annual contribution limit of $7,000, or $8,000 for those 50 or older, that applies to Roth IRAs.
If you convert money from a traditional 401k to a roth, you will pay taxes at the time of the conversion.
One question we often get is whether Roth Conversions count towards the Modified Adjusted Gross Income (MAGI) thresholds that phase out Roth contributions. The short answer is “no”. However, it is important to note that while Roth Conversions don't count towards those thresholds, IRA distributions do.
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