When conducting Roth conversions as part of your financial strategy, many people unknowingly encounter the pro rata rule, which can result in an unexpected tax bill. In this article, we break down what the pro rata rule is, how it works, and ways you can mitigate the tax impact when conducting Roth conversions. Executive summary The pro rata rule affects Roth conversions when your traditional IRA has both pre-tax and after-tax contributions. You can’t convert only after-tax (