Ella is considering converting RMD money into an existing Roth account. Incremental conversions post-RMDs can reduce taxes and offer distribution control. An analysis can help determine if this strategy benefits you and the best approach to take.
RMDs are minimum distributions starting at age 72 or 73. They are taxable and calculated based on your account balance and age. Roth accounts don’t require RMDs. Converting to a Roth can reduce future RMDs, lower taxes, and provide distribution control.
Roth conversions can reduce RMDs and tax burdens. Converting after RMDs begin is an option. It’s crucial to plan based on current and future tax liabilities, income, and deductions. Financial advisors can help assess if Roth conversions align with your financial goals and needs.
Consider Roth conversions to control when you withdraw retirement funds and avoid high RMDs. Planning around RMDs with a financial advisor can help develop a retirement income strategy that meets your needs. Rebalancing investments with RMD withdrawals can align your portfolio with your risk tolerance.
Brandon Renfro, CFP®, offers financial planning advice on personal finance and taxes. Reader questions are answered in future columns. Roth conversions can reduce taxes and offer flexibility in retirement planning. Planning with a financial advisor can help navigate RMDs and align your portfolio with your goals.

Read more at Yahoo Finance: Is it Worth Doing a Roth Conversion in the Same Year that My RMDs Start?