"The most attractive feature of a Roth IRA is its tax-free growth and withdrawals.... Ideally, you should pay the taxes due on a Roth conversion from non-retirement assets.... This makes Roth conversions a less practical solution for those who are cash-strapped or heavily concentrated in pre-tax retirement accounts.... Because conversions increase your adjusted gross income (AGI), they may reduce your eligibility for income-based programs such as [ACA] health insurance subsidies or FAFSA-based financial aid for college-bound children.... A poorly executed Roth conversion can create a cascade of tax headaches."  MORE >>