For retirees and pre-retirees in High Point and across the Triad, the length of that stretch depends on when earned income stops and when Social Security, pension income, and RMDs begin. This article focuses on that timing question.
What does retirement change about the timing of a Roth conversion?
Retirement does not by itself rule out a Roth conversion, but it changes the question from "is it allowed?" to "does the timing fit?" A required minimum distribution for the year must be taken first and cannot be converted, and the converted amount is generally added to that year's income. (Source: IRS Publication 590-B) Roth IRAs do not require withdrawals during the original owner's lifetime. (Source: IRS RMD FAQs)
For the basic rules, including whether you can convert after retirement, see our guide to Roth conversion in retirement.
Why can taxable income drop between retirement and RMDs?
Three things usually stop at once when someone retires: salary, bonus, and the payroll deductions that came with them. What replaces them tends to arrive later and in stages: Social Security when it is claimed, required minimum distributions at the RMD age, and pension income whenever it starts. In between, taxable income can fall well below working-years levels.
That gap is not a planning trick. It is a result of how the rules are sequenced, and it is not guaranteed for every household. Because the federal income tax system is progressive, lower-income years can be years in which recognizing additional income costs less per dollar, and a Roth conversion is one way to recognize income deliberately. A conversion is a taxable event, and it cannot be undone.
Pre-tax savings are generally taxed when they are withdrawn. The planning question is when, and at what rate. Tax brackets are adjusted for inflation each year and are set by law that Congress can change, so neither a conversion now nor waiting can be shown to produce a lower tax bill. (Source: IRS 2026 tax inflation adjustments)
What can narrow the years before RMDs?
- Required minimum distributions. RMDs generally begin at 73 for people born from 1951 through 1959 and at 75 for people born in 1960 or later. Once they start, they add income you cannot decline. (Sources: IRS required minimum distributions and Congressional Research Service) Our RMD guide for retirees explains how RMD timing can narrow the decision window, including the birth-year table and the special case for 1959.
- Claiming Social Security. Depending on other income, up to 85% of a benefit can become taxable, and the interaction is not linear. (Source: IRS Publication 915)
- The death of a spouse. A survivor may file as single in later years, often on similar income, and the single brackets are narrower than the joint brackets. (Source: IRS 2026 tax inflation adjustments) This is one of the more commonly overlooked changes.
- A pension or annuity starting. Fixed income you cannot turn off can reduce the room for anything voluntary, because it is generally taxable income in the year it is received.
How does the arithmetic work?
A conversion may come out ahead when the rate paid today is lower than the rate the money would have faced later, and it may come out behind when it is not. Growth assumptions, time horizons, and where the tax is paid from can change the size of the result, and sometimes its direction.
| Convert now | Leave it alone | |
|---|---|---|
| Tax paid | At today's known rate | At a future, unknown rate |
| Future growth | Potentially tax-free if qualified | Tax-deferred, then taxed on withdrawal |
| Required distributions | None for the original owner | From age 73 or 75 |
| Effect on heirs | Ten-year rule may apply; generally tax-free | Ten-year rule may apply; generally taxable |
(Sources: IRS Publication 590-B and IRS RMD FAQs)
Pay the tax from outside the account
Every dollar withheld from the conversion itself is a dollar that stops compounding tax-free. For someone under 59½, withholding from the IRA can also trigger a 10% early-withdrawal additional tax on the portion used to pay the tax. Converting a smaller amount that can be paid for from taxable savings is one way households limit this effect. (Source: IRS Publication 590-B)
Size it to a bracket, not to a feeling
Converting an entire balance in one year can push the top of the conversion into brackets well above where it started. Our guide explains how your bracket is determined in retirement and why the next dollar can cost more than the bracket suggests. A common approach is to choose a bracket deliberately, convert up to its ceiling, and repeat in later years. The right ceiling depends on the household's own income, deductions, and goals.
What second-order effects can catch people?
Converted amounts count toward modified adjusted gross income (MAGI), and MAGI drives more than income tax.
- Medicare Part B and D premiums. The Social Security Administration sets the income-related monthly adjustment amount (IRMAA) using a federal tax return from two years earlier, so a conversion at 63 can raise premiums at 65. For 2026 premiums, SSA lists the first surcharge tier at a MAGI above $109,000 for single filers and above $218,000 for joint filers. Thresholds change, so confirm current figures. (Source: SSA Medicare premiums)
- Social Security taxation. A higher MAGI may increase the portion of a benefit that is taxable. (Source: IRS Publication 915)
- ACA premium subsidies. For anyone receiving the premium tax credit before Medicare, household income is based on MAGI, so added income can change the credit amount. (Source: IRS Premium Tax Credit FAQs)
None of that makes conversions a bad idea. It makes unmeasured conversions risky. These effects can be estimated in advance, which is why the sequence is worth modeling before the year ends rather than discovering it on a return.
What should you check before a Roth conversion in retirement?
- Taxable income. What is expected income for the year, and how much room remains in the bracket you are willing to fill?
- RMD timing. Has an RMD already been taken this year, and when do RMDs begin? The RMD comes first and cannot itself be converted.
- Medicare premiums. Could the added MAGI move you into an IRMAA tier two years from now, or affect premiums at 65?
- Paying the tax. Can the tax be paid from outside the IRA, and what would that cost elsewhere in the plan?
- Irreversibility. Are you comfortable that the conversion is final for the tax year?
This checklist is a starting point for a conversation with a tax professional, not a recommendation to convert.
Can a Roth conversion be undone?
No. A conversion made in a tax year beginning after December 31, 2017 cannot be recharacterized as a contribution to a traditional IRA. Before that, a conversion could be reversed if markets moved against you. Now it is final for the tax year, which is a strong reason to run the numbers first. (Source: IRS Publication 590-B)
How can you run the numbers before deciding?
Our Roth conversion calculator lets you compare a Roth conversion with leaving the IRA unchanged using your own assumptions. It produces an educational estimate, not tax advice, and it does not know your full return.
For related reading, see our RMD guide for retirees. If you would like to talk through how these pieces fit together, you can learn about our tax planning and retirement income services or set up a 30-minute conversation on our scheduling page.
This content is provided for educational purposes only and does not constitute tax, legal, or investment advice. Tax rules, RMD ages, and Medicare thresholds are subject to change. Consult a qualified tax professional for guidance specific to your situation.
This article is general information, not individualized investment, tax, or legal advice, and it does not account for your circumstances. Tax rules referenced are those in effect at the date shown and change over time. Consult a qualified professional before acting.