Decisions about Roth conversion come down to tax rates. A couple, ages 66 and 65, with pensions and Social Security totaling $10,900 monthly, are considering Roth conversions. Worried about RMD impact on taxable income and Medicare premiums, they seek clarity. Advisers recommend starting conversions earlier to avoid high-income surcharges. Calculating future tax rates is key.

The couple, with $2.3 million in IRAs, could reach $3.7 million by RMD age. With pension income, they may pay taxes on Social Security benefits. Roth conversions up to the 22% bracket could save on tax arbitrage. However, stopping conversions at RMD age is advised to prevent higher tax brackets. Planning for future income and taxes is essential.

Paying for Roth conversions out of savings impacts cash flow. Efficiency in tax payments is crucial. If leaving money for children or charity, considering future tax rates is advised. Decisions should align with individual preferences and long-term financial goals. Planning for estate distribution and tax implications is essential for optimal financial management.

Read more at Yahoo Finance: Should we drain our $200,000 savings for Roth conversions on $2.3 million in our 60s?