Short answer: Roth conversions and required minimum distributions do different jobs. An RMD is a required withdrawal from certain retirement accounts. A Roth conversion is a voluntary, taxable transfer into a Roth account.
For many people, the strongest retirement income planning approach is not choosing one over the other. It is sequencing them thoughtfully.
The timing matters now. A Roth conversion must be completed by December 31, 2026 to count for the 2026 tax year. There is no extension. (IRS Roth conversion guidance)
An RMD creates a withdrawal obligation. Traditional IRAs, SEP and SIMPLE IRAs, and many employer plans (including 401(k), 403(b), and 457(b) plans) are generally subject to RMD rules. Account owners generally begin taking RMDs at age 73. The age-75 starting rule applies to people born in 1960 or later. The rules for workplace plans can allow some people to wait until retirement, subject to exceptions. (IRS RMD FAQs)
A Roth conversion moves eligible money voluntarily. Converting pre-tax retirement funds to a Roth generally makes the untaxed amount taxable as ordinary income in the year of conversion. Roth IRAs have no lifetime RMDs for the original account owner, though beneficiaries are subject to distribution rules. (IRS Roth conversion guidance)
Neither move automatically produces more income. The outcome depends on when you pay tax, your withdrawal needs, and how the accounts fit your wider plan.
A Roth conversion can make sense when you can pay tax on the converted amount at a rate that fits your long-term plan, and you can fund that tax bill without undermining your retirement cash flow.
One potential window is a temporarily lower-income year, such as a gap between leaving work and starting Social Security or taking RMDs. A carefully sized conversion during that period may use room in lower tax brackets instead of converting a large balance all at once.
The 2026 federal brackets are marginal. For example, the 22% bracket begins above $50,400 of taxable income for single filers and $100,800 for married couples filing jointly. The 24% bracket begins above $105,700 for single filers and $211,400 for joint filers. A conversion adds to taxable income; it does not mean the entire conversion is taxed at the highest rate it reaches. (IRS Revenue Procedure 2025-32)
A Roth account can also support future tax-free withdrawals when distribution requirements are met. It may provide flexibility in retirement income planning and reduce the need to draw from tax-deferred accounts later. But a Roth conversion is not an investment by itself. The investments held inside the account still matter.
A conversion can be a strategic tax-planning move, not a tax-free shortcut. Since 2018, Roth conversions generally cannot be undone through recharacterization. Make the decision with the tax cost in view.
Sometimes the better move is to take the required distribution and avoid converting more than your plan calls for.
That may be appropriate when:
An RMD is not optional simply because you are considering a Roth conversion. RMD amounts are generally not eligible to be rolled into another tax-deferred account. Missing an RMD can result in an excise tax on the shortfall, generally 25%, potentially reduced to 10% if corrected within the applicable two-year period. (IRS RMD FAQs)
The first RMD may generally be delayed until April 1 of the year after you reach the applicable starting age. Later RMDs are generally due by December 31 each year. Delaying the first distribution can mean taking two RMDs in the following year, so weigh the timing with your tax picture.
A conversion can affect more than your federal income tax bracket. It can also affect Medicare’s income-related monthly adjustment amounts, or IRMAA.
Medicare generally uses income from two years earlier to determine IRMAA. That means a 2026 conversion can affect Medicare premiums in 2028. A conversion that crosses an IRMAA tier boundary can trigger the higher tier’s premium, not merely a charge on the dollars above the threshold.
CMS’s published 2026 thresholds begin above $109,000 in modified adjusted gross income for individual filers and $218,000 for joint filers. Those are 2026 figures, not the thresholds to use for a 2026 conversion’s potential 2028 premium impact. Thresholds are indexed, so check the CMS figures applicable to the premium year being modeled. (CMS 2026 Medicare premium and IRMAA information; CMS Medicare training material on the lookback)
Model both pages before converting: the tax bracket and the Medicare tier. A conversion that appears manageable under one view may look different when both are included.
They treat RMDs and conversions as competing strategies. They are not. RMDs set a withdrawal schedule; conversions let you choose when to move eligible assets and recognize taxable income.
They convert too much at once. Filling lower brackets over time may be more suitable than converting the entire balance in a single year. The right amount depends on your tax return, expected future income, cash flow, and Medicare timing.
They assume a Roth conversion itself creates tax-free investment returns. The account’s tax treatment and its underlying investments are separate considerations. Tax-free treatment does not remove investment risk.
They wait past the deadline. A conversion must be completed by December 31, 2026 to count for 2026. Filing an extension does not extend the conversion deadline.
The goal is not simply to move money into a Roth. It is to coordinate taxable withdrawals, conversions, future income needs, and Medicare costs.
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This article provides general educational information, not individualized tax, legal, investment, or Medicare advice. Tax rules and Medicare thresholds can change. Review your specific circumstances before acting.
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