Roth Conversions in Your 60s: A Tax-Saving Playbook
The window between retirement and RMDs is golden for Roth conversions. Here's how to do it without spiking your taxes.
Why the 60s window is unique
Between retirement (often early-to-mid 60s) and the start of Required Minimum Distributions (RMDs) at 73, many retirees have their lowest taxable income in decades. That's the cheapest time to convert traditional IRA dollars to Roth.
The mechanics
You move money from a traditional IRA to a Roth IRA. The amount converted is taxable that year. Future growth and withdrawals from the Roth are tax-free, and Roth IRAs have no RMDs.
How much to convert each year
The standard approach: fill the 12% and 22% brackets without spilling into 24% or beyond.
For 2026, the top of the 22% bracket is around $200,000 for married filing jointly. If you have $80,000 of other income, you could convert up to $120,000 before hitting 24%.
Watch out for IRMAA
Medicare premiums (IRMAA surcharges) jump at income thresholds. A conversion that pushes you over $206,000 MAGI (married) can add $70–$400/month to Medicare premiums two years later. Convert just under the cliffs.
Best ages to convert
- 63 and 64 — last 2 years before Medicare starts; no IRMAA worry yet.
- 65–72 — Medicare started, RMDs not yet. Convert aggressively while staying under IRMAA.
- 73+ — RMDs eat most of your bracket room; conversions become harder.
Bottom line
Roth conversions are a long-term arbitrage between today's known tax rates and tomorrow's unknown ones. For most retirees with $500k+ in traditional IRAs, converting $50k–$120k per year through your 60s can save six figures in lifetime taxes.