The 11-Year Roth Conversion Window That Determines Your 73-Year-Old Tax Bill
A couple retiring at 62 with $1.5 million in a traditional 401(k) faces a critical tax decision. Without action, the balance grows to roughly $3 million by age 73, triggering a $113,000 required minimum distribution (RMD) that pushes them into high tax brackets and Medicare surcharges. By converting $90,000 to $100,000 annually into a Roth IRA between ages 62 and 70, they can reduce the first RMD to approximately $60,000, avoiding the 85% Social Security tax and IRMAA penalties.