A 75-year-old with a large traditional IRA balance and active required minimum distributions (RMDs) asked whether Roth conversions still make sense at this late stage. Al Kingan, an estate and business planning executive with MassMutual, says no, the person has not missed the opportunity.
Kingan recommends a measured, partial conversion approach rather than attempting to convert the entire balance. The reader can fill up their current tax bracket each year, potentially converting $50,000 annually without moving into a higher tax bracket, provided the move does not trigger income-related monthly adjustment amounts (IRMAAs) that would raise Medicare premiums. RMDs must be withdrawn first and cannot be converted. After taking RMDs, additional funds can be converted to a Roth.
Investing excess RMDs in a taxable account creates estate planning benefits. Those assets receive a step-up in basis at death, meaning heirs can liquidate them immediately with no tax consequences. Post-death appreciation is taxed only to heirs, and unlike traditional IRAs, no 10-year distribution rule applies.
Qualified charitable distributions (QCDs) can help. Kingan notes the 2026 QCD limit is $111,000. Direct transfers from an IRA to qualified charities satisfy RMDs while lowering adjusted gross income, leaving more room in the current tax bracket for partial Roth conversions without spiking the tax rate.
Life insurance funded with unneeded RMD portions may also help, according to Charles Czajka, founder of Macro Money Concepts. A tax-free death benefit can help heirs cover taxes on large traditional IRAs they inherit during their peak-earning years.
Kingan suggests coordinating inheritance distributions with beneficiaries' tax brackets. A person might leave traditional IRA assets to lower-bracket beneficiaries and Roth assets or non-qualified investments to higher-bracket beneficiaries.