Should You Convert to a Roth IRA Before Turning 73?

As you approach age 73, it’s normal to feel the weight of financial decisions swirling around Required Minimum Distributions (RMDs). With the new RMD age now starting at 73 thanks to the SECURE 2.0 Act, this is a timely moment to reconsider whether a Roth IRA conversion could give you more control and tax flexibility moving forward.

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Let’s walk through the true benefits—and what to weigh before converting:

1. Skip RMDs and Grow Tax-Free

Once you convert assets to a Roth IRA, you’ll no longer be required to take annual withdrawals—even after 73. That gives your investments more time to grow and offers unique flexibility in retirement.

2. Take Advantage of Historically Low Tax Rates

Financial experts widely agree that the window between 2025 and 2028 may be a strategic opportunity for Roth conversions. With national debt rising and future tax increases likely, converting now at lower rates could deliver significant savings later. Plus, Roth conversions can help reduce Medicare surcharges and avoid tax spikes during widowhood or future income shifts.

3. Timing Can Be Everything

The best time for many is the “sweet spot” between retirement and RMD commencement. During this phase, your tax bracket may naturally be lower, giving you an ideal environment for strategic conversion.

4. But It’s Not Right for Everyone

Converting means paying taxes upfront. If that large tax bill strains your current cash flow—or pushes you into a higher bracket, it might offset the long-term benefits. Additionally, using funds outside your IRA to pay the tax is a critical strategy to keep your Roth balance growing tax-free.

5. Tailor Your Plan—Don’t Go All In

Instead of a large one-time conversion, consider a phased approach aligned with your tax planning, income needs, and retirement lifestyle. This way, you can stay within your tax bracket, control Medicare surcharges, and build flexibility into your inheritance strategy.

If any of this resonates with your situation—or if you’re curious whether a Roth conversion aligns with your future goals—let’s discuss it more closely. Download our free guide below, “To Convert—or NOT to Convert—in 5 Easy Steps.” Book a free virtual consultation at RFGWealthAdvisory.com or call us at 940-464-4104 to make an appointment.

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