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GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years Trusted by When it comes to retirement planning<\/a>, everyone\u2019s got an opinion. Financial advisors push complicated portfolios, bloggers swear by extreme savings and your neighbor won\u2019t stop talking about their real estate investments.<\/p>\n So I decided to cut through the noise and ask ChatGPT directly: What\u2019s the single smartest retirement move to make in 2026?<\/p>\n The answer was surprisingly straightforward \u2014 and it has everything to do with timing<\/a>.<\/p>\n The Answer: Go All-In on Roth Accounts<\/p>\n ChatGPT\u2019s response was clear: Maximize your tax-advantaged accounts with a Roth-first strategy while tax rates are still relatively low.<\/p>\n<\/p>\n That means prioritizing Roth IRA contributions, Roth 401(k) contributions and Roth conversions over traditional pretax retirement accounts. The reason this matters so much right now comes down to one major deadline.<\/p>\n Why 2026 Is a Critical Year<\/p>\n The Tax Cuts and Jobs Act provisions expire after 2025. That means many Americans will face higher federal tax rates starting in 2026 and beyond.<\/p>\n If you convert money from a traditional IRA to a Roth IRA before rates go up, you pay taxes at today\u2019s lower rates. Then that money grows tax-free forever and you never pay taxes on it again \u2014 even when rates are higher.<\/p>\n ChatGPT explained that this creates a perfect opportunity. Lock in lower tax rates now by moving money into Roth accounts before the window closes. For people who expect to be in a similar or higher tax bracket in retirement, this move could save thousands of dollars over a lifetime<\/a>.<\/p>\n How To Actually Do This<\/p>\n The Roth-first strategy isn\u2019t complicated, but it requires action in three areas.<\/p>\n First, contribute to a Roth IRA or Roth 401(k) instead of the traditional versions. If your income is too high for direct Roth IRA contributions, you can use the backdoor Roth strategy by contributing to a traditional IRA and immediately converting it.<\/p>\n Second, consider converting some of your existing traditional IRA money to a Roth. You\u2019ll pay taxes on the conversion amount this year, but then that money grows tax-free<\/a>. The key is converting when your income is lower or tax rates are favorable \u2014 which is exactly what 2025 and early 2026 represent before rates potentially rise.<\/p>\n Third, if you have a 401(k) with Roth options, funnel as much as possible into the Roth side. For 2025, the 401(k) contribution limit is $23,000 for people under 50 and $30,500 for those 50 and older.<\/p>\n The Math Makes Sense<\/p>\n Here\u2019s a simple example. Say you convert $50,000 from a traditional IRA to a Roth while you\u2019re in the 22% tax bracket. You pay $11,000 in taxes now.<\/p>\n But if tax rates rise to 25% or higher in retirement and you would have withdrawn that same $50,000 then, you\u2019d pay $12,500 or more. Plus, all the growth on that $50,000 stays completely tax-free in the Roth account.<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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