RMD vs Roth Conversion Timing – Smooth Lifetime Taxes

Why consider conversions pre‑RMD

Reduce future RMD base, shift growth to tax‑free Roth, manage brackets before Social Security + RMDs stack.

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Inputs to model

• Current IRA balances and expected returns
• Desired marginal bracket cap (e.g., stay in 22%)
• Years until RMD age and Social Security start
• IRMAA thresholds and state taxes

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Outputs

• Projected RMDs with vs without conversions
• Lifetime tax paid and NPV comparisons
• IRMAA tier crossings by year

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Rules of thumb

• Fill target bracket annually (don’t spill into higher tier)
• Stop conversions if IRMAA jump outweighs benefits
• Maintain 1–2 years of cash to avoid selling equities for tax bills

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Mini case

Couple 62/60 converts $30k/yr for 8 years, stays under 22% + IRMAA tier → ~25% lower RMDs at 73 and higher Roth share in retirement.

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FAQs

• Can I convert after RMD age? Yes, but you must take the RMD first; RMD itself cannot be converted.
• Does Roth conversion affect ACA subsidies or credits? Yes—monitor MAGI impacts.
• Should I convert in down markets? Often favorable: lower values → fewer shares taxed for same dollar conversion.

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Related guides

• RMD Factor Table: /calculator/rmd-factor-table
• RMD Tax & Withholding Strategies: /calculator/rmd-tax-withholding-strategies
• Withdrawal Timing: /calculator/rmd-withdrawal-timing

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Related keywords we cover

• pre‑rmd roth conversions, bracket management strategy
• irmaa thresholds planning, roth ladder strategy
• capital gains coordination with conversions