63-Year-Old Couple Plans $600,000 Roth Conversion to Cut Taxes Before 73
Updated
Updated · 24/7 Wall St. · Jul 18
63-Year-Old Couple Plans $600,000 Roth Conversion to Cut Taxes Before 73
3 articles · Updated · 24/7 Wall St. · Jul 18
Summary
$600,000 is set to move from the couple’s traditional 401(k) to a Roth IRA in roughly $75,000 annual conversions over eight years, targeting the gap before required minimum distributions start at 73.
That window matters because the couple has no earned income, letting them fill lower tax brackets now instead of facing larger taxable withdrawals later when RMDs stack on top of Social Security.
2026 thresholds shape the plan: joint filers can convert about $133,000 and stay within 12%, or $243,600 and remain within 22%, while the 24% bracket begins at $211,400 of taxable income.
IRMAA makes oversized conversions costly — Medicare’s standard Part B premium is $202.90 a month, but joint filers with MAGI above $218,000 pay $284.10, with surcharges rising sharply across five tiers.
Delaying Social Security to 70 preserves more low-income years for conversions, while Roth assets later help reduce taxable retirement income and limit how much of Social Security becomes taxable.