If you think your tax rate will be lower in retirement, then this article is not for you.

But if you're of the belief that tax rates will only rise from here, or you believe your tax rate will be more in your retirement years than it is today, a Roth IRA conversion could be something you should consider.

A Roth IRA conversion is the process of moving money directly from a pretax account, such as a traditional IRA or 401(k), to a post-tax account (Roth IRA or Roth 401(k)) and paying the tax bill in that year.

So why would you voluntarily choose to convert and pay taxes before you have to? Well quite frankly, to pay off Uncle Sam now so that you own your retirement account free and clear for life.

With a Roth IRA, you have the potential for future tax-free withdrawals of everything in your account. It can help manage tax risk by paying taxes at today's known rates. So if tax rates rise in the future, tax-free distributions from Roth IRAs will be even more valuable.

Traditional (non-Roth) IRAs can potentially have “side effects” that can cost you in more ways than just adding to your taxable income. They could also cause you to be phased out of itemized deductions and various tax credits, increase your exposure to the 3.8% surtax on investment income, cause you to include more of your Social Security benefits in income or increase your Medicare Part B premiums. If you want to try and avoid these issues, then you need a plan.

If you are over 59½ and you've had any Roth IRA for more than five years, then all withdrawals from any of your Roth IRAs will be tax- and penalty-free for life. If you're over 59½ but haven't had a Roth IRA for five years yet, you can still take out any of your converted amount, tax and penalty free, at any time. If you're younger than 59½, other rules apply.

During your lifetime, you can take as much, or as little, as you want. Unlike the required minimum distribution rules that apply to traditional IRAs, you're not forced to take anything at 72 if you don't want to. That means your Roth IRA can potentially continue to grow and compound tax-free for you, and up to 10 more years for your heirs, which also makes it an intriguing vehicle from an estate planning perspective.

Something else to keep in mind is that unlike Roth IRA contributions, there are no restrictions on who can make Roth IRA conversions. You can't be too old or too young. You can be working or retired. There's no minimum or maximum income limitations. If you want to convert your IRA to a Roth IRA, there's nothing in the tax rules that will stop you from doing so.

To help decide whether you want to convert some or all of your traditional IRA to a Roth, you should be able to answer yes to these questions: (1) Do you have a rough idea of the conversion's impact on your tax bill? (2) Do you have a plan to pay the resulting taxes? (3) Do you have a reasonable expectation that the benefits of “pre-paying” your taxes like this makes sense in your overall plan?

Roth IRA conversions can be especially useful if you had a low-income year. For example, are you a business owner with unusually low sales? Or are you paying high, nonrecurring medical bills? Or are you retired but not yet receiving Social Security benefits, pensions or IRA distributions?

Like anything in the investing world, there are potential limitations and risks of Roth IRA conversions. There is no guarantee that the Roth IRA conversion will achieve the intended results. There is no guarantee that the Roth IRA distribution rules won't be changed.

The amount converted is generally added to your income at the time of conversion, which could trigger the same “side effects” associated with distributions from a traditional IRA. And of course, there is no guarantee that investments will appreciate in the Roth account after a conversion.

Make sure that you coordinate your IRA planning with your overall retirement, estate, tax, education and financial plans. Your IRA and other retirement accounts can impact each of these areas, and it's important to factor those things into your planning. If you think a Roth conversion makes sense for you, the tricky part is the timing and calculation of how much.

You should seek the help of a certified public accountant or a certified financial planner. They can figure your “headroom” before you bump into the next income tax bracket or any potential side effects of the conversion.

Wendy Bennett is a senior financial adviser at Bennett Associates Wealth Management in Butler.