The years before RMDs start are prime time for conversions. Here is why and how to use that window wisely.
Why convert before RMDs begin?
Required minimum distributions begin at age 73 for those born 1951 through 1959 and age 75 for those born in 1960 or later. Once they start, you must withdraw a taxable amount each year whether you need it or not, which can inflate your income, taxes, and Medicare premiums. Converting before RMD age shrinks the traditional IRA balance that future RMDs are calculated from, lowering those mandatory withdrawals. Better still, the pre-RMD years, especially in early retirement, often have low taxable income, so conversions are taxed at lower rates. Money in the Roth then grows tax-free with no lifetime RMDs.
How much should you convert before RMDs?
A common approach is converting enough each year to fill your current tax bracket without crossing into a higher one or tripping a Medicare IRMAA threshold. Spreading conversions across the pre-RMD window, sometimes a span of several years, captures low rates while avoiding income spikes. The goal is to reduce your future RMDs enough that they no longer push you into higher brackets or surcharge tiers later. Because the math weaves together taxes and Medicare, call 1-800-MEDIGAP at 1-800-633-4427 to understand the Medicare effects, and set the exact amounts with a tax professional.