If two people are married, and one has a job, and the other doesn’t, but each have separate IRA’s…could they file taxes “married filing separately” and the unemployed person move their regular IRA to ROTH (under the taxable limit) without incurring taxes on that money? The funds converted are taxable. If you convert a sizable 401K there will be income taxes. You have been employed most of this year. Unless you are very low income, you already have taxable income for 2013. Also, remember that unemployment is taxable. As previously recommended, run the numbers and see the results.