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ROTH IRAS Do Not Have To Be A Young Person's Game - Pt. 2

5 reasons to consider a Roth IRA conversion in your 50s.


If you are over 59 ½, but younger than 72 and you have a Traditional IRA, you might want to “top off your tax bracket” with a Roth IRA conversion. This is particularly true if you don’t think you will need that money in retirement, but will be forced to take required minimum distributions (RMDs) once you reach age 72.

For instance, a couple is at the upper level of the 22% tax bracket in 2023 if they have adjusted gross income (AGI) of $75,000. If their actual income is less than that, they could convert the difference from their Traditional IRA at this lower tax rate up to the cap. If done every year until they are required to take RMDs, they can substantially lower those RMDs, as well as the taxes they’ll owe on their nest egg going forward.

Continue to read Pt. 3 here.