Why Are There No Roth Conversions In My Plan?

Where Are the Roth Conversions?

If you add Roth conversions to the plan in Income InSight and discover that conversions are not taking place it may be because:

  • The Effective Marginal Rate is higher than the elected option. If you elect Roth conversions to the 12% Effective Marginal Rate and the rate for that year is already at or more than 12%, there will be no conversions. The same concept applies if you elect conversions to the 10%, 12%, 22% or Lifetime Effective Rate.  

  • There is not a source of non-qualified money to pay the taxes associated with the conversions.

In this example, there was not a surplus of non-qualified income to cover the taxes on a conversion until after seven years.