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.
Video Summary Here
Let’s walk through the true benefits—and what to weigh before converting:
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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.
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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.
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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.
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.
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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.
Financial Success Doesn’t Happen by Chance
At RFG Wealth Advisory, we’re committed to bringing clarity and confidence to your financial decisions, especially the ones that shape your legacy.
RFG Wealth Advisory is an independent, fee-only registered investment advisory firm. We always put our clients’ interests first and have a transparent fee structure for your peace of mind. Call us today.
To Convert-or NOT to Convert in 5 Easy Steps
Disclaimer
Financial Success Doesn’t Happen by Chance.
Contact lead advisor Chris Robinson with RFG Wealth Advisory in Argyle, Texas to discuss your questions.
RFG Wealth Advisory is an independent, fee-only Registered Investment Advisor firm in Argyle, Texas. At RFG Wealth, our fiduciary duty ensures your interests always come first, and we maintain a transparent fee structure for your peace of mind. Contact us today!
Investment advice is offered through RFG Wealth Advisory, a Registered Investment Advisor.
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Chris Robinson is the president of RFG Wealth Advisory, which he founded in 1995. He is a current resident of Argyle and native of Denton, Texas.
