From Yahoo Finance: 2025-05-10 08:30:00

Converting $865,000 to a Roth IRA offers long-term tax benefits like tax-free retirement income but incurs upfront taxes. Spreading the conversion over multiple years can minimize the impact, avoiding higher tax brackets. Consult a financial advisor to strategize and consider tax deductions, HSA contributions, and market timing to reduce tax liability.

When converting funds from a traditional IRA to a Roth IRA, you’ll owe income tax on the amount converted. Spreading the $865,000 over multiple years can prevent tax bracket jumps. Utilize lower income years, tax deductions, HSA contributions, and market downturns to strategically minimize taxes. Consult with a financial advisor for personalized planning.

Read more: How Can I Roll Over $865K to a Roth IRA and Keep the Tax Bill Low?