If you have a significant balance in a traditional IRA or 401(k), you've accumulated something valuable — and something that carries a tax obligation you haven't settled yet. Every dollar in a pre-tax retirement account is money the IRS is waiting to collect. The question isn't whether you'll pay tax on it. The question is when, at what rate, and on whose terms.

For people between 55 and 70, there is often a narrow window — sometimes years wide, sometimes just a few good tax years — where a deliberateRoth conversion strategycan meaningfully reduce lifetime taxes, protect your heirs, and give you greater control over your retirement income. This guide explains how to think about it, when it makes sense, and how to execute it without creating expensive mistakes.

What a Roth Conversion Actually Is

A Roth conversion is the process of moving money from a pre-tax retirement account — a traditional IRA, SEP IRA, SIMPLE IRA, or eligible 401(k) — into a Roth IRA. The IRS treats the converted amount as ordinary income in the year of conversion. You pay income tax on it now, and in exchange, the money grows tax-free and can be withdrawn tax-free in retirement.

There is no income limit on Roth conversions. Anyone can do one, regardless of how much they earn. (This is different from making a direct Roth IRA contribution, which does phase out at higher income levels.)

The Basic Mechanics

When you convert, your custodian or plan administrator moves the funds and sends you a Form 1099-R. The converted amount gets added to your gross income for the year. You pay ordinary income tax on it at whatever your marginal rate is. The converted funds then begin growing tax-free inside the Roth IRA.

Importantly, Roth IRAs have no required minimum distributions (RMDs) during the owner's lifetime. Traditional IRAs and 401(k)s require you to begin taking RMDs at age 73 (as established by the SECURE 2.0 Act, which updated the prior age of 72). Those distributions are fully taxable income, and they can push you into higher brackets, increase your Medicare premiums, and reduce the tax efficiency of your overall retirement income.

Why Ages 55–70 Is the Optimal Window

The logic behind Roth conversion in your 50s and 60s comes down to a simple tax arbitrage question: are your tax rates lower now than they will be later?

For many people in this age range, the answer is yes — for a few specific reasons.

The Pre-RMD Gap Years

If you've retired or reduced your income before RMDs begin at 73, you may have a period of several years where your taxable income is relatively low. You're no longer earning a salary. Social Security, if you've delayed it, hasn't started yet. Your investment income may be modest. This creates space in lower tax brackets that would otherwise go unused.

Converting enough of your traditional IRA each year to fill up those brackets — without crossing into the next one — is one of the most effective forms ofRoth conversion tax strategyavailable to pre-retirees and new retirees.

RMDs Will Arrive Whether You're Ready or Not

At 73, the IRS requires you to start taking distributions from traditional accounts, calculated using life expectancy tables published by the IRS. You don't get to choose how much. You may not need the income. But you will owe the tax.

If you've done nothing to reduce your pre-tax balance before then, those forced distributions can push significant amounts of income into the 22%, 24%, or even 32% brackets. By converting strategically in your 50s and 60s — when you have more control — you reduce the pre-tax balance that will eventually be subject to RMDs.

Current Tax Rates Have an Expiration Date

The Tax Cuts and Jobs Act of 2017 reduced individual income tax rates across the board. Those reductions are scheduled to sunset after 2025, which would revert tax brackets to their pre-2018 levels. While tax law can and does change, many tax professionals view the current rate environment as a favorable one for Roth conversions. Converting at today's rates before they potentially increase is a reasonable planning consideration — not a guaranteed outcome, but a meaningful data point.

Step-by-Step: How to Execute a Roth Conversion Strategy

Step 1: Get a Clear Picture of Your Pre-Tax Balance

Start by identifying every account subject to RMDs and income tax on withdrawal: traditional IRAs, rollover IRAs, SEP IRAs, SIMPLE IRAs, and any pre-tax 401(k) balances. This total is your tax liability inventory — the full amount the IRS is owed in future ordinary income.

Step 2: Project Your Future RMD Amounts

Use the IRS Uniform Lifetime Table (Publication 590-B) to estimate what your required minimum distributions will be at 73 and beyond, based on your current balance and assumed growth. This projection tells you approximately how much taxable income you'll be forced to recognize each year if you don't act — and therefore what bracket you'll likely be in.

This step often surprises people. A $1.5 million IRA balance at 65 can generate RMDs well into the five-figure range annually by the mid-70s, potentially stacking on top of Social Security and other income.

Step 3: Determine Your Annual Conversion Target

The goal is to fill available tax bracket space each year without crossing into a higher bracket than you'll face later. For many people in this window, that means converting enough to bring taxable income up to the top of the 22% or 24% bracket — but not beyond.

This is where the math gets personal. The right conversion amount depends on your other income sources (Social Security, pensions, investment income, part-time work), your deductions, and your projected future income. There is no single right number. There is a right number for your situation.

Step 4: Watch for Conversion Traps

A few conversion side effects can increase your effective cost if you're not careful:

Medicare IRMAA surcharges.If your modified adjusted gross income (MAGI) exceeds certain thresholds (for 2025, $106,000 for individuals and $212,000 for married couples filing jointly, per CMS), Medicare Part B and Part D premiums increase significantly. These surcharges use a two-year lookback, meaning a large conversion this year affects your Medicare premiums two years from now.

Social Security taxation.Up to 85% of Social Security benefits can become taxable if your combined income exceeds IRS thresholds. A large conversion can push income above those thresholds and create an unexpected tax on benefits you were counting on receiving mostly tax-free.

State income taxes.Not all states treat Roth conversions the same way. Some states exclude IRA income from state taxes; others tax it at ordinary income rates. Know your state's rules before you convert.

Step 5: Pay the Tax From Non-Retirement Funds if Possible

One of the most common mistakes inIRA to Roth conversionis using part of the converted funds to pay the tax bill. If you convert $50,000 and withhold $10,000 to cover the tax, only $40,000 makes it into your Roth IRA. The withheld $10,000 is also treated as a distribution and may be subject to a 10% early withdrawal penalty if you're under 59½.

Paying conversion taxes from a taxable brokerage account or savings — not from the IRA itself — maximizes the amount that makes it into the Roth and grows tax-free.

Step 6: Repeat Annually During the Window

A single large conversion is rarely better than a series of smaller, calibrated ones over multiple years. Annual conversions allow you to respond to changes in your income, tax law, and account balances. They also spread the tax hit across multiple years, which typically keeps you in lower brackets than one large conversion would.

When a Roth Conversion Makes the Most Sense

ARoth conversion retirement planningstrategy tends to be most valuable when:

  • You are in a low-income year due to retirement, job change, or business transition
  • You expect to be in the same or higher bracket in retirement (especially after RMDs begin)
  • You have a long time horizon and expect the Roth to grow significantly tax-free
  • You want to leave tax-free assets to heirs (Roth IRAs inherited by non-spouse beneficiaries under the SECURE Act must be distributed within ten years — but those distributions are tax-free)
  • You have non-retirement funds available to pay the tax

It is generally less advantageous if you need to pull from the IRA itself to pay the tax, if you're already at or near your peak lifetime income, or if you have a short time horizon before you'll need the funds.

A Note on the 5-Year Rules

Roth IRAs are governed by two distinct five-year rules that often cause confusion:

The first applies toRoth IRA earnings: you must have had a Roth IRA open for at least five tax years before earnings are considered tax-free, even if you're over 59½.

The second applies toeach conversion specifically: converted funds must remain in the Roth for five years to avoid the 10% early withdrawal penalty, unless you're already 59½ or older. If you're converting at 60 or older, this second rule generally doesn't restrict you — but it's worth confirming with a tax advisor.

Let's Talk Through Your Situation

Roth conversion math is personal. The numbers that make this strategy work — or work against you — depend on your account balances, income sources, family situation, estate goals, and timeline.

At Inventa Wealth Advisors, our team holds the CFP®, CDFA®, and APMA™ designations and works specifically with clients ages 55–70 who are navigating complex financial transitions. We run multi-year Roth conversion projections as part of comprehensive retirement income planning — helping clients identify how much to convert, in which years, and how to sequence it alongside Social Security timing, Medicare planning, and estate goals.

Our office is at 7440 South Creek Road, Suite 250, Sandy, UT 84093, and we offer Telewealth virtual appointments for clients across the country. Visitinventawealth.comto schedule.

The Bottom Line on Roth Conversion Strategy

The 55–70 window is not just a good time to consider Roth conversions — for many people, it's the best time. The gap between retirement and required minimum distributions is a tax planning opportunity that, once closed, doesn't come back.

A well-executed strategy doesn't require taking on excessive tax risk. It requires knowing your brackets, understanding the side effects, paying taxes from the right source, and repeating the process deliberately over several years. Done correctly, it shifts the balance of your retirement assets from accounts that work for the IRS to accounts that work for you.

The goal isn't to avoid taxes entirely — it's to pay them at the right rate, in the right year, under your terms rather than the government's.


The information in this article is for educational purposes only and does not constitute legal, tax, or financial advice. Consult a qualified attorney, financial advisor, and tax professional regarding your specific circumstances.