▁be ▁converted ▁back ▁into ▁a ▁Trad itional ▁I RA . ▁One ▁can ▁choose ▁an ▁optimal ▁( low est ▁tax ▁rate ) ▁time ▁to ▁convert ▁over ▁one ' s ▁life . ▁Because ▁you ▁have ▁a ▁right , ▁but ▁not ▁an ▁oblig ation , ▁to ▁convert , ▁this ▁is ▁like ▁an ▁option ▁in ▁fin ance . ▁As ▁with ▁options ▁in ▁fin ance , ▁this ▁flex ibility , ▁which ▁allows ▁one ▁to ▁h edge ▁future ▁uncertainty , ▁adds ▁some ▁additional ▁value ▁to ▁the ▁Trad itional ▁I RA . ▁ ▁Dis adv antages ▁ ▁One ▁must ▁meet ▁the ▁el ig ibility ▁requirements ▁to ▁qual ify ▁for ▁tax ▁benefits . ▁If ▁one ▁is ▁an ▁active ▁particip ant ▁in ▁a ▁ret irement ▁plan ▁at ▁work , ▁one ' s ▁income ▁must ▁be ▁below ▁a ▁specific ▁threshold ▁for ▁your ▁fil ing ▁status . ▁If ▁one ' s ▁income ▁( and ▁thus ▁tax ▁rate ) ▁is ▁that ▁low , ▁it ▁might ▁make ▁more ▁sense ▁to ▁pay ▁tax es ▁now ▁( R oth ▁I RA ) ▁rather ▁than ▁de fer ▁them ▁( Tr ad itional ▁I RA ). ▁ ▁All ▁withdraw als ▁from ▁a ▁Trad itional ▁I RA ▁are ▁included ▁in ▁gross ▁income , ▁which ▁are ▁subject ▁to ▁federal ▁income ▁tax ▁( with ▁the ▁exception ▁of ▁any ▁n ond ed uct ible ▁contributions ; ▁there ▁is ▁a ▁formula ▁for ▁determ ining ▁how ▁much ▁of ▁a ▁withdraw al ▁is ▁not ▁subject ▁to ▁tax ). ▁This ▁tax ▁is ▁in ▁lieu ▁of ▁the ▁original ▁tax ▁on ▁employ ment ▁income , ▁which ▁had ▁been ▁de ferred