Should I do a Roth conversion before RMDs start?
Often the years between retirement and required minimum distributions, which begin at 73 or 75 depending on your birth year, are the lowest-tax window for converting. But a conversion raises this year’s income, which can lift Medicare IRMAA premiums two years later and make more Social Security taxable. Compare converting with not converting before you move money.
Can I convert my RMD to a Roth?
No. Once RMDs begin, the required amount for the year must come out first, and it cannot be converted. Only dollars above the RMD can be converted.
How much should I convert each year?
There is no single answer. Many people convert in pieces, often late in the year once income is clearer, to stay below a target tax bracket and the next Medicare IRMAA tier.
Who should model a Roth conversion with me?
Your advisor and your CPA, working from the same numbers. Dr. Pat Pachciarz® is a tax strategist with Pinnacle Tax Strategies and models conversion versus no conversion with your tax professional before anything moves.
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Dr. Pat Pachciarz® is a Private Wealth Advisor + Tax Strategist, CEPA®, and Founder & CEO of The Pinnacle Group®, with 20+ years in private wealth management, including J.P. Morgan Private Client Group. He serves Oswego and Aurora, IL, from Aurora, and virtually in all 50 states. Call 815-486-0722.
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