When you make a Roth conversion, you add the entire amount converted to your taxable income for that year. For example, say that you convert $100,000 from your 401(k) to a Roth IRA in 2024. Your taxable income for 2024 would increase by $100,000. This means that part of making a Roth conversion is ensuring you have the cash on hand to pay the increased taxes. If you are over the age of 59 1/2, you can take that cash from the funds you are converting, which will in turn reduce your portfolio's capital. If no ...