One of the best things (maybe the best thing) about having a Roth IRA is your ability to withdraw money from it without having to pay taxes. However, as is the case with most things concerning the IRS, there are some rules you must follow if you want to reap the benefits of such an amazing perk.

Taxes can be complex. And as much as we may not like them, they’re here to stay–even once we enter retirement.

Roth conversions can be a powerful tool to save on taxes in retirement. Yet, even with that goal in mind, many people don’t pay enough attention to the taxes incurred from the Roth conversion itself. How is a Roth IRA conversion taxed? When converting funds from a Traditional IRA to a Roth, that withdrawal is assessed at your marginal income tax rate.