What a Roth conversion is
You move money from a pre-tax account, like a traditional 401(k), 403(b) or IRA, into a Roth IRA, and you pay income tax on the amount you move this year. After that it grows tax-free, and there are no required withdrawals from the Roth during your lifetime. You're choosing to pay tax now instead of later.
The conversion window
The best time to convert is usually after your paychecks stop but before required minimum distributions (RMDs) start, when your taxable income is lowest. Under current law, RMDs start at 73, or at 75 for people born in 1960 or later. Michael and Linda were born in 1964, so theirs start at 75.
| Michael & Linda | |
|---|---|
| Pre-tax savings (401(k) + 403(b)) | $475,000 of $550,000 |
| Conversion window | 2027–2038 (12 years) |
| RMDs begin | 2039, at age 75 |
| Effective federal tax rate today | 11.4% |
| Estimated lifetime savings from converting | $0 |
Meet Michael & Linda
They're a fictional middle-income couple we built so you can see a full retirement plan with real numbers instead of rules of thumb. Here's what goes into their plan.
| Item | Michael & Linda |
|---|---|
| Ages today | Both 62, married filing jointly |
| Work | Linda retires in 2027 ($48,000 salary); Michael in 2028 ($72,000 salary) |
| Savings | $550,000 total: Michael's 401(k) $310,000, Linda's 403(b) $165,000, Linda's Roth IRA $40,000, emergency savings $35,000 |
| Social Security | Both claim at 67 in 2031: Michael $2,450/month, Linda $1,650/month |
| Pension | Linda, $650/month starting 2027 |
| Home | Worth $380,000, $95,000 left on the mortgage ($1,150/month, paid off in 2034) |
| Living costs | $3,675/month, plus about $1,300/month for healthcare |
| Goal | Leave at least $100,000 at the end of the plan |
Why converting doesn't pay off for them
- Their RMDs will be moderate. With $475,000 in pre-tax savings that they're also spending from, required withdrawals at 75 aren't large enough to push them into a much higher tax bracket.
- Their tax rates now and later look similar. A conversion is taxed at the bracket it lands in, and for them that bracket isn't expected to be much higher later, so paying tax earlier saves little.
- Converting has its own costs. Taxes paid on a conversion have to come from somewhere, and that money stops growing for them.
When conversions usually do help
- Large pre-tax balances, where RMDs would push you into higher brackets later.
- A widow or widower who will file single. The survivor's income usually drops less than their tax brackets do, which shrink by about half.
- Big gaps between retiring and Social Security, with years of very low income to "fill up" a low bracket.
- Leaving money to children who may be in a higher bracket than you, since inherited Roth money comes out tax-free.
Traps to watch for
- Medicare IRMAA: conversion income can raise your Medicare Part B and D premiums two years later.
- Health insurance before 65: a conversion counts as income for Marketplace premium help, so it can raise what you pay for coverage.
- Social Security taxes: extra income can make more of your Social Security taxable.
- The 5-year rule: each conversion has its own 5-year clock before the converted amount can be withdrawn penalty-free if you're under 59½.
The official rules are on the IRS RMD page, and we keep a list of official retirement resources too.
See every number for yourself
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Quick answers
Should I do Roth conversions in early retirement?
Only if the tax you pay now is lower than what you'd pay later. For our sample couple with $475,000 in pre-tax savings and an 11.4% effective tax rate, the planner found no lifetime savings. Larger balances or a future single-filing survivor often change the answer.
When do RMDs start?
Under current law, required minimum distributions start at 73, or at 75 for people born in 1960 or later. Check the IRS RMD page for your situation.
Can a Roth conversion raise my Medicare premiums?
Yes. Medicare's IRMAA surcharge is based on your income from two years earlier, and conversion income counts.
Keep reading
Educational only, not financial, tax or legal advice. Michael & Linda are a fictional sample couple built to show how the planner works; their figures come from the RetireBlueprint Pro sample plan as of October 2026 and use its default assumptions (3% inflation, 2.5% Social Security cost-of-living increases). Your numbers will be different.