John Cox

Blogs · @wyome

Tagged taxes · everything

247wallst.com

Before Your 401(k) RMDs Start at 73, Make Sure You Execute This Tax-Saving Move in Your 60s

Lays out a concrete year-by-year Roth conversion plan for a couple retiring in their early 60s with $2M in traditional 401(k)s, using the low-income gap years before Social Security and RMDs to convert roughly $77,000 annually and fill the 12%-to-22% bracket space. It quantifies the payoff — over $400,000 in lifetime tax savings versus letting the balance compound untouched to a $4M RMD time bomb — and flags practical traps like the IRMAA two-year lookback and the importance of paying conversion taxes from the brokerage account rather than the IRA itself. Worth keeping as a specific, numbers-driven template rather than generic "consider converting to Roth" advice.

Permalink retirementpersonal financemedicare401(k)

www.gobankingrates.com

Narrow Roth Conversion Window Retirees Miss

The piece flags a narrow window—the gap years between retiring and starting Social Security—as prime time for Roth conversions, since taxable income is unusually low before RMDs and benefits kick in later and push tax brackets higher. It cites Wade Pfau and Matt Hylland making the case that retirees who delay claiming Social Security into their late 60s/70s, especially while living off cash savings, can convert traditional retirement funds at minimal tax cost. Worth keeping as a concrete tactical reminder to plan conversions proactively rather than realizing the opportunity too late.

Permalink retirementpersonal financetaxessocial security