How do I convert a traditional IRA to a Roth IRA at Fidelity?

Log in to Fidelity.com, go to your traditional IRA account, and select 'Convert to Roth IRA' from the account actions menu. You choose the amount to convert and elect how you want taxes withheld (or pay from a separate taxable account). The conversion is typically processed within one business day. Fidelity's online tool walks you through each step.

Can I convert only part of my Fidelity traditional IRA to a Roth?

Yes. Fidelity allows partial Roth conversions of any dollar amount. Most tax-efficient strategies involve converting just enough to fill a lower tax bracket without pushing income into a higher one. You can do multiple partial conversions throughout the year.

Should I have Fidelity withhold taxes on a Roth conversion?

Generally, no — if you can afford to pay the tax bill from non-IRA funds. Withholding reduces the amount converted (less money in the Roth) and counts as a distribution, which may trigger the 10% penalty if you're under 59½. Paying taxes from a taxable account preserves the full conversion amount in the Roth.

Does converting to a Roth IRA at Fidelity count against my annual contribution limit?

No. Roth conversions are completely separate from the annual Roth IRA contribution limit ($7,000 or $8,000 if age 50+). You can convert any amount from a traditional IRA to a Roth in the same year you make your maximum Roth contribution.

Can I convert a Fidelity 401(k) directly to a Roth IRA?

Yes, if your plan allows in-service distributions (while still employed) or after separation from service. You can roll a traditional 401(k) to a Fidelity traditional IRA first, then convert to Roth. Or, if your plan allows, you can roll directly from the 401(k) to the Roth IRA in one step — both are taxable events.

Fidelity Roth Conversion 2026 — Strategy Guide & Step-by-Step

A Roth conversion at Fidelity moves money from your traditional IRA into a Roth IRA — you pay income tax on the converted amount now, and the money grows tax-free permanently. There are no income limits on conversions, no limit on conversion amount, and Fidelity makes the mechanics simple through an online conversion tool. The hard part is the strategy: deciding how much to convert, in which years, to minimize your lifetime tax burden.

What Is a Roth Conversion?

A Roth conversion is the process of moving money from a traditional IRA (or other pre-tax retirement account) into a Roth IRA. The converted amount is added to your taxable income for the year — you pay the tax now, and the money grows tax-free from that point on. There are no income limits on Roth conversions, and no limit on how much you can convert in a single year.

2026 Tax Brackets: Planning Your Conversion Amount

The goal of most Roth conversions is to convert just enough to fill a lower tax bracket without pushing income into a higher one.

2026 Federal Income Tax Brackets — Single Filer

Rate	Taxable Income
10%	$0 – $11,925
12%	$11,926 – $48,475
22%	$48,476 – $103,350
24%	$103,351 – $197,300
32%	$197,301 – $250,525
35%	$250,526 – $626,350
37%	Over $626,350

2026 Federal Income Tax Brackets — Married Filing Jointly

Rate	Taxable Income
10%	$0 – $23,850
12%	$23,851 – $96,950
22%	$96,951 – $206,700
24%	$206,701 – $394,600
32%	$394,601 – $501,050
35%	$501,051 – $751,600
37%	Over $751,600

The 2026 standard deduction is $15,000 for single filers and $30,000 for married filing jointly — subtract this from gross income to find your starting taxable income before the conversion.

Worked Example: Filling the 12% Bracket

A married couple retires early in 2026 with $40,000 in Social Security and pension income. Their taxable income after the $30,000 standard deduction is $10,000 — well inside the 10% bracket. The top of the 12% bracket is $96,950.

Room remaining in the 12% bracket: $96,950 − $10,000 = $86,950
They convert $86,950 from their traditional IRA to a Roth IRA
All $86,950 of converted income is taxed at 10%–12% — never above 12%
The money now grows tax-free, and future Roth withdrawals won’t push them into higher brackets in their 70s and 80s

The Pro-Rata Rule: The Critical Complication

If you have any pre-tax money in any traditional IRA, the IRS applies the pro-rata rule to conversions. You cannot choose to convert only after-tax money — the IRS treats all traditional IRA balances (across all IRAs) as one pool and applies a proportional tax.

Example: You have $90,000 pre-tax and $10,000 after-tax (non-deductible contributions) in traditional IRAs. You convert $10,000.

90% of the conversion ($9,000) is taxable
10% ($1,000) is tax-free
You cannot convert only the after-tax portion

The pro-rata rule is why the backdoor Roth IRA requires either having no pre-tax IRA balance or first rolling it into an employer 401(k) plan to “clear” the IRA of pre-tax money.

Five Roth Conversion Strategies

1. Bracket-filling conversion — Convert up to the top of your current tax bracket each year. Best for retirees with temporarily low income.

2. Roth conversion ladder — Convert a set amount every year for 5+ years to build a pool of penalty-free Roth funds accessible after a 5-year aging period. Popular with FIRE (Financial Independence, Retire Early) practitioners.

3. Low-income year conversion — Convert a large lump sum in a year when income drops: job loss, sabbatical, early retirement, gap year. Maximizes the tax-rate advantage.

4. Pre-RMD conversion — Convert before age 73 (or 75) when required minimum distributions (RMDs) begin. RMDs push income up; pre-converting reduces future RMD amounts and future tax burden.

5. Social Security gap conversion — If you delay Social Security to age 70 for a larger benefit, the years between retirement and Social Security receipt are often the lowest-income years of retirement — ideal for large conversions.

The 5-Year Rules

Two separate 5-year rules apply to Roth accounts:

Rule 1 — Earnings: Roth IRA earnings (growth) can be withdrawn tax-free only if the account has been open for at least 5 years (counted from January 1 of the year of the first Roth IRA contribution or conversion). This clock is per person, not per conversion.

Rule 2 — Converted principal (under 59½): Each conversion has its own 5-year clock. If you withdraw converted principal within 5 years of the conversion AND you are under 59½, you owe the 10% early withdrawal penalty on that amount. After 59½, this rule does not apply — converted principal can be withdrawn at any time penalty-free once you’re past 59½.

Practical impact: If you are over 59½, the 5-year rule on converted principal does not affect you. If you are under 59½ and using a Roth conversion ladder for early retirement income, plan for a 5-year delay before tapping each conversion without penalty.

What a Roth Conversion Does NOT Include

Roth conversion does not count toward your Roth IRA contribution limit ($7,000 / $8,000 in 2026). Conversions and contributions are tracked separately.
You cannot convert a required minimum distribution (RMD). If you are 73+ (or 75+ under SECURE 2.0 for those born in 1960 or later), you must first take your annual RMD before converting any additional amount.
No undoing conversions. The TCJA 2017 eliminated the ability to recharacterize (undo) Roth conversions. Once converted, the tax is owed.

How to Execute a Roth Conversion at Fidelity

Log in to Fidelity.com and navigate to your traditional IRA account
Select “Convert to Roth IRA” from the account’s action menu or transaction options
Enter the conversion amount — you can specify a dollar amount or convert a percentage; Fidelity allows full or partial conversions
Choose your tax withholding election — Fidelity asks whether you want federal and state tax withheld from the conversion. For most investors, the answer is no: pay taxes from a separate taxable account to keep the full converted amount in the Roth
Review and confirm — Fidelity displays a summary before submission; conversions are typically processed within one business day
Track on Form 1099-R — Fidelity issues a 1099-R at year-end showing the converted amount; you report this on IRS Form 8606 with your tax return

Fidelity also allows you to select specific lots (individual fund shares) to convert — useful for converting shares with minimal embedded gains or for tax-lot optimization.

Fidelity-Specific Considerations

ZERO funds and conversions: Fidelity’s ZERO expense ratio funds (FZROX, FZILX, etc.) can be held in a Roth IRA after conversion. You can convert in-kind — the fund shares transfer to the Roth without being sold — or convert cash.

Roth IRA must exist first: If you don’t already have a Fidelity Roth IRA, open one before initiating the conversion. You can open a Roth IRA online in minutes.

Multiple conversions: Fidelity allows multiple conversions within a calendar year. You can spread conversions throughout the year or batch them at year-end once you know your final income picture.

In-plan Roth conversions: If you have a Fidelity 401(k) through your employer and the plan allows it, you may be able to convert pre-tax 401(k) balances to Roth 401(k) within the plan — without moving the money to an IRA. Check your specific plan documents.

When a Roth Conversion Makes Sense at Fidelity

Scenario	Conversion Makes Sense?
You expect to be in a higher tax bracket in retirement	Yes — pay lower rates now
Income is temporarily low (early retirement, gap year)	Yes — rare window of low rates
You want to reduce future RMDs	Yes — smaller pre-tax balance = smaller RMDs
You have heirs in high tax brackets	Yes — tax-free inheritance
You expect rates to rise in future years	Yes — lock in today’s rates
You’d need to sell investments to pay the tax	Cautious — reduces the benefit
You’re in a high bracket with no near-term change	Usually no — pay later if rates stay same

Tax Withholding: Pay From Outside the IRA

Fidelity will offer to withhold taxes from your conversion. The better choice for most investors is to not withhold and instead pay the taxes from a separate taxable account:

Withholding reduces the amount that lands in the Roth
Withheld amounts count as a distribution (10% penalty risk if under 59½)
Paying from outside the IRA maximizes the Roth balance and preserves compound growth

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy