A Roth Conversion involves moving money from a pre-tax retirement account (IRA, 401k, etc) into a post-tax retirement account (Roth IRA). When you move money from a traditional retirement account into a Roth IRA you will be taxed for each dollar you transfer. These monies are considered “earned income” in the year you make the conversion. In other words, as if you earned it that year, like your paycheck.