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Tax Strategy

Roth conversions and loss harvesting: a year-end pairing

May 4, 2026 · 4 min read · Atreides Wealth

Figures are current as of 2026. Tax law changes; this is informational and not tax or legal advice. Confirm any figure with your advisor before acting.

Two of the most reliable year-end tax moves are stronger together than apart: Roth conversions and tax-loss harvesting.

Roth conversions

Converting pre-tax IRA assets to a Roth means paying tax now in exchange for tax-free growth and withdrawals later. The best years to convert are usually lower-income years — a sabbatical, a business down year, or early retirement before required minimum distributions begin.

Tax-loss harvesting

Harvesting means selling positions at a loss to offset realized gains (and up to $3,000 of ordinary income), while staying invested through a similar — not “substantially identical” — fund to respect the 30-day wash-sale rule.

Why pair them

A Roth conversion adds to your taxable income for the year. Harvested losses can help absorb part of that tax hit, letting you convert more for the same net tax cost. Done together and sized correctly, the pairing can move more of your retirement savings into the tax-free Roth column without spiking your bracket.

The coordinated view

The right conversion amount depends on your bracket, your other income, your state, and your long-term plan. We model multi-year projections so each conversion is sized deliberately — not guessed at in December.

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