Roth conversion vs. doing nothing and taking RMDs.
The pre-RMD window (roughly retirement through age 73–75) is when this decision matters most. The right answer turns on bracket today vs. bracket later, IRMAA, heir tax rates, and the 5-year rules.
| Feature | Convert (Roth Strategy) | Do Nothing (Take RMDs) |
|---|---|---|
| Tax now | Pay tax at current bracket | No tax today |
| Tax in retirement | $0 on Roth withdrawals | Ordinary income on every RMD |
| RMDs required at 73/75? | No — Roth has no lifetime RMD | Yes — based on Uniform Lifetime Table |
| IRMAA impact (current year) | Conversion raises MAGI → higher Medicare premium 2 yrs later | Lower current MAGI |
| IRMAA impact (later) | Lower MAGI in retirement (no RMDs) | RMDs may push into higher tiers |
| Heir tax cost (10-yr rule) | Tax-free to heirs (still 10-yr distribution rule) | Heirs pay ordinary tax in their own bracket |
| 5-year rules | Two separate 5-yr clocks for converted dollars | N/A |
| Best fit | Lower bracket today than projected later | Higher bracket today than projected later |
| Charitable plan | Less benefit if you'll use QCDs anyway | QCDs satisfy RMD up to $108,000 (2025) |
Common questions about this comparison
If I convert to Roth, do I still have RMDs?
No — Roth IRAs have no RMD requirement during the original owner's lifetime. Roth conversions reduce future Traditional IRA balances and therefore reduce future RMDs.
When is doing nothing (just taking RMDs) the right call?
When current tax bracket is meaningfully higher than projected retirement bracket, when QCDs will satisfy charitable goals, or when heirs are in a low bracket. Math matters more than narrative.
Can I do both — convert some and let the rest become RMDs?
Yes, and that's usually optimal. Most plans involve filling up specific tax brackets each year between retirement and age 75 (the SECURE 2.0 RMD start age for those born 1960+).
How does IRMAA factor in?
Roth conversions raise current-year MAGI, which can push you into higher Medicare premium brackets two years later. Conversions should be planned with IRMAA tier limits in mind.
Do I have to convert before RMDs start?
Strategically, yes — once RMDs start, the RMD itself cannot be converted, and the RMD income limits how much room remains in your bracket for additional conversion.