He Spent His 60s Quietly Moving His IRA Into a Roth. At 73, When the IRS Showed Up to Dictate His Withdrawals, There Was Nothing Left to Tax

Fifty-year-old Jamie had a traditional IRA and had recently reached the age when the IRS starts dictating withdrawals. He decided to convert his IRA to a Roth during his 60s, which eliminated required minimum distributions (RMDs) at 73. This allowed him to control his withdrawals instead of the government. By moving money into the Roth in his 60s, he avoided having those dollars appear on the RMD schedule and get taxed at a higher rate later.

Conversions are taxed at ordinary income tax rates, and the account grows tax-free for the rest of his life. The SECURE 2.0 Act pushed the RMD start age to 73 for those born between 1951 and 1959. Advisor.com's free tool matches users with vetted fiduciary advisors who put their interests first in taxes, retirement, estate planning, and more.