As you near age 73, one of the biggest milestones in retirement planning comes into play: required minimum distributions (RMDs). Once RMDs begin, your flexibility narrows — and that’s often when people begin asking whether a Roth IRA conversion makes sense.

Recent updates under the SECURE Act and SECURE 2.0 — plus the IRS’s final guidance on inherited IRAs — make timing more important than ever. Planning before RMDs kick in can preserve your options and potentially save you and your family thousands in lifetime taxes.

Here are five key factors to consider if you’re weighing a Roth conversion.

Why Age 73 Matters: RMDs Narrow Your Options

At age 73, the IRS requires you to start taking distributions from your traditional IRA. Once those distributions start, you can’t convert that year’s RMD to a Roth. That means your flexibility decreases — and your taxable income may increase.

Planning ahead before 73 gives you more choices about when and how to pay taxes.

Factor 1: When Will You Need the Money?

If you’ll need to draw on those funds soon for everyday living expenses, a Roth conversion may not make sense.

Example: We’ve seen families who converted, only to withdraw the money a year later for expenses — and ended up with an unnecessary tax hit.

On the other hand, if you don’t need the money right away, converting could allow your savings to grow tax-free for the rest of your life.

Factor 2: How Will You Pay the Taxes?

Every Roth conversion creates a taxable event. Ideally, you should pay the taxes from funds outside your retirement accounts.

Example: If you convert $100,000 from a traditional IRA and you’re in the 22% tax bracket, you’ll owe $22,000 in taxes. Paying that from the IRA itself reduces the very balance you wanted to protect.

Factor 3: What Do You Expect Future Tax Rates to Be?

If you expect your future tax rate to be higher — maybe due to stacked RMDs, higher income, or changes in the law — converting earlier can make sense.

By converting now, you’re choosing to pay taxes on your own terms, instead of being forced to when withdrawals are required.

Other Reasons to Consider a Roth Conversion

• You have large charitable deductions or tax credits in the conversion year.
• You want to avoid RMDs after age 73.
• You want the ability to keep contributing after 73 (with earned income).
• You’d like to leave your heirs a tax-free inheritance (though they must generally empty the account within 10 years).
• Owners of Roth 401(k)s and 403(b)s no longer face lifetime RMDs as of 2024 — just like Roth IRAs.

When a Roth Conversion Might Not Be the Best Choice

• You dislike paying a large upfront tax bill.
• You don’t fully trust Congress to keep Roths tax-free.
• You plan to leave your IRA to charity (charities don’t pay income tax anyway).

The Bottom Line: Why Planning Ahead Is Critical

There’s no one-size-fits-all answer when it comes to Roth conversions. The right decision depends on your goals, your tax picture, and your family’s needs.

But here’s the key: once you turn 73 and begin RMDs, your options shrink. Planning ahead — before those distributions begin — gives you more flexibility and could save your family thousands in taxes.

👉 Download our full guide: To Convert or Not to Convert in 5 Easy Steps (from Ed Slott & Company).
👉 Or reach out to Richmond Brothers to explore whether a Roth conversion makes sense in your plan.

At Richmond Brothers, our mission is to help you live fearlessly into and beyond retirement — with clarity and confidence about the decisions that matter most.