Roth conversions are popular at the end of the year – time to make an exception.

As the calendar draws to a close, some investors may be looking to convert their Roths to individual retirement accounts, depending on their long-term goals. Experts say there’s good reason why this is Ross’ turnaround season, with a few exceptions.

This strategy transfers pre-tax or nondeductible IRA funds to a Roth IRA to accelerate future tax-free growth. However, you will instead have to pay prepaid taxes on the converted balance.

Roth conversions are popular among younger retirees because they often convert their funds into a lower income tax bracket than they did during their working years. Additionally, retirees typically have their income reduced before they can claim Social Security and begin making required withdrawals.

There’s a reason year-end Roth conversions are popular. This strategy requires accurate current year revenue estimates, which can be more difficult before the fourth quarter. Conversions often include multi-year tax projections.

Many provisions of the 2017 Tax Cuts and Jobs Act were originally scheduled to expire at the end of 2025. So until Republicans passed President Donald Trump’s “Big and Beautiful Bill” into law in July, investors were worried about the future of their tax system.

And now, amid the government shutdown, many fiscal advisers are watching Congress debate the Affordable Care Act’s health insurance subsidies. The results are important for young retirees considering Roth conversions because increased income can affect eligibility for ACA premium subsidies.

Additionally, many investors are still waiting on estimates for year-end mutual fund distributions, which typically arrive in brokerage accounts in November or December.

“This is why you do your tax planning at the end of the year,” says Tommy Lucas, a certified financial planner with Moisand Fitzgerald Tamayo in Orlando, Florida. His firm ranks No. 69 on CNBC’s 2025 100 Financial Advisors list.

Some advisors argue that it’s better to complete a Roth conversion early in the year to start tax-free growth sooner. But some say converting at the beginning of the year before you have a solid estimate of your income for the year can be a mistake.

“We don’t know what’s going to happen until December,” Lucas said.

Earning more than expected can be problematic because other tax benefits may be phased out.

While many advisors are waiting until the end of the year to make the Roth switch, Tyson Sprick, CFP and managing partner at Caliber Wealth Management in Overland Park, Kansas, says there are other times when the strategy makes sense.

For example, some advisors take advantage of market downturns to convert smaller balances and reduce prepaid tax payments. Investors can see tax-free growth in their Roth accounts when the market recovers.

Mr. Sprick’s company adopted this strategy amid price fluctuations in early 2025. For some customers, they used up about half of their annual Roth conversion budgets during the market downturn and planned to complete the remaining 2025 conversions in December.

“We’re certainly not market timers and we’re not advocates of getting too cute, but opportunities exist year-round,” he says.