A Roth Conversion adjustment moves dollars from a Traditional retirement account into a Roth retirement account in a specified year. The converted amount is treated as fully taxable ordinary income in the conversion year, then sits in the Roth account where future growth is tax-free.

How the adjustment works

• Choose the source Traditional account and the destination Roth account.
• Enter the conversion amount in today's dollars.
• Set the year (one-time) or recurring window the conversion applies to.

In the conversion year, the engine adds the amount to ordinary income (which can push you into higher tax brackets and affect IRMAA, ACA subsidies, and Social Security taxability), debits the Traditional account, and credits the Roth account.

Manual adjustments vs the Roth Optimizer

The Roth Optimizer can recommend yearly conversion amounts based on goal mode (fill the 22% bracket, IRMAA-aware, etc.). Use the optimizer when you want guidance on how much to convert each year.

The Roth Conversion adjustment is where you record manual conversions. A specific dollar amount you intend to do in a specific year, regardless of optimizer suggestions. The two are independent: a plan can use the optimizer alone, manual conversions alone, or both layered together.