Should I Do Roth Conversions Before RMDs Start?
Introduction
"I'll just pay the taxes later when I take the money out."
"That's the plan most people have."
"Is it a good plan?"
"Depends on what tax rates look like when 'later' arrives."
How Does a Roth Conversion Actually Work?
A Roth conversion is simple in concept: you move money from a traditional IRA or 401(k) into a Roth IRA, pay ordinary income tax on the amount you move that year, and from that point forward the money grows and comes out tax-free.
The trade is paying a known tax rate now instead of an unknown one later.
Whether that's a good deal depends on your situation.
For a lot of people, the window between retirement and age 73 is the best opportunity they'll ever have to make that trade.
Why the Window Between Retirement and 73 Matters
Here's what most people miss: when you stop working and before Social Security and RMDs kick in, your taxable income often drops to its lowest point in decades.
That's the conversion window.
→ No paycheck = lower income
→ Social Security not started = lower income
→ RMDs not started yet = lower income
Once RMDs begin at 73, you're forced to take taxable distributions whether you need the money or not. Those distributions can push you into a higher bracket, make more of your Social Security taxable, and trigger Medicare premium surcharges.
Converting some money before 73 shrinks those future RMDs and the tax bill that comes with them.
Why Are Roth IRAs Beneficial?
Qualifying withdrawals from Roth IRAs are 100% tax-free.
Additionally, Roth IRAs have no required minimum distributions during the original owner's lifetime.
This means the money can grow tax-free indefinitely.
It’s also a great way to pass tax-free dollars to your beneficiaries.
For heirs, an inherited Roth still follows the 10-year distribution rule, but every dollar comes out tax-free.
That's meaningfully different from leaving a traditional IRA, where every dollar inherited is taxable income.
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Action step: If you're between 60 and 72 with income lower than it will be once Social Security and RMDs begin, ask a tax professional to model whether a partial Roth conversion makes sense this year.
FAQs
Q: Is there a limit to how much I can convert in one year?
A: No legal cap — but converting too much in one year can push you into a higher bracket, trigger Medicare surcharges, or make more Social Security taxable. Resist the temptation to “rip off the band-aid.”
Q: Can I convert a 401(k) directly to a Roth IRA?
A: Yes. If you've left the employer, you can roll the 401(k) to a traditional IRA first, then convert. The mechanics vary by plan.
Q: What happens to a Roth IRA when I die?
A: Non-spouse heirs generally must empty the account within 10 years, but every withdrawal is tax-free. Leaving a Roth to working-age children is one of the most tax-efficient things you can do for them.
