401K Rollover to Self Directed Roth- Good or Bad Idea

[Darren Looker]

My wife has around $30,000 in separate retirement accounts from 2 previous employers. She would like to combine these and roll it over into something self-directed so that it can be invested in RE. Since we expect it to grow and have higher taxes in the future, we have considered a Roth. She has no income. We normally file jointly. Federal tax rate is 24%. Is there a way to avoid taking a 24% hit when converting? Could she file federal income tax separately?