Converting a traditional IRA into a Roth IRA, sometimes called a “backdoor” Roth IRA, should be done after considering all its tax implications.
For the most part, contributions you make to a traditional IRA are tax-deductible. This means that you will have to pay the taxes for both the contributions made and the earnings generated at the moment of conversion from a traditional IRA into a Roth IRA.
However, if you contributed to a traditional IRA without taking the tax deduction, you won’t have to pay taxes once more during conversion.
Consulting a financial advisor can help you decide what will best serve your retirement goals. Converting is not for everybody and, before taking action, you should establish if the benefits received from having a Roth IRA (tax-free earnings, no RMD) outweigh the financial impact of the tax payment during conversion.