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A Kiplinger report says retirees who have started required minimum distributions have not necessarily missed every opportunity for a Roth conversion. A partial conversion may still fit, but RMDs must be taken first and conversion income can increase taxes and Medicare premiums.
A Kiplinger retirement report says retirees who have begun required minimum distributions can still consider partial Roth conversions, although the tax costs may make converting an entire traditional IRA impractical. The advice addresses a 75-year-old reader worried that conversion income could raise both their tax rate and Medicare premiums.
The report quotes Al Kingan, an estate and business planning executive with MassMutual, saying the reader has not necessarily missed the opportunity. He suggests considering conversions sized to stay within a chosen tax bracket rather than treating the decision as all or nothing. A possible annual amount, such as $50,000, is presented as an illustration, not a recommendation or a figure shown to suit every taxpayer.
There is an important sequencing rule: the account owner must first take the year’s RMD. That required distribution cannot be converted to a Roth IRA. Additional eligible traditional IRA funds may be converted afterward, with the converted amount generally adding to taxable income for that year. Whether a conversion also raises Medicare costs depends on the person’s income and applicable IRMAA thresholds.
Kingan also discusses investing RMD money that is not needed for living expenses in a taxable account. The report says inherited taxable investments may receive a step-up in basis under current tax rules, while non-spouse heirs generally face a 10-year deadline to withdraw inherited IRA funds. These rules and their application can depend on the account and beneficiary; the article presents them as planning considerations, not a personalized tax determination.
Balancing Conversion Taxes and Heir Costs
The decision can affect both the retiree’s current finances and what beneficiaries may owe later. A large traditional IRA can produce substantial RMDs, which are taxable and may push income into higher tax brackets or affect Medicare premiums through IRMAA. For non-spouse beneficiaries, inherited IRA withdrawals can also concentrate taxable income within the required 10-year period.
But converting funds now is not automatically cheaper. Conversion income is generally taxable in the year it occurs, and a large conversion could increase the owner’s tax bill or Medicare premiums. A staged approach may reduce the amount converted in any one year, but its value depends on the taxpayer’s current and future tax circumstances, health, expected longevity, beneficiaries, and the size of the account. The report does not establish that any one strategy will save money for every reader.
The broader point is that “missed the chance” is not a yes-or-no answer. Even after RMDs start, a retiree might have room for a limited conversion or might choose another way to manage the inheritance. That choice can require coordination among tax planning, charitable giving, investments and estate planning.
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RMDs Change the Conversion Math
Traditional IRA owners generally begin taking required distributions at an age set by federal law, and the amount is calculated under applicable rules. Roth conversions are often considered earlier in retirement, when a person may have more years to spread taxable conversions across. Once RMDs begin, the required amount has to come out first, leaving only additional funds available for conversion in that year.
The Kiplinger report frames the question around a retiree, age 75, with a large traditional IRA who wants to leave a more tax-efficient inheritance. It describes three alternatives alongside partial conversions: directing eligible IRA funds to charity through a qualified charitable distribution (QCD), investing unneeded RMD proceeds in a taxable account, and considering life insurance. Each has conditions and costs; the report does not provide enough information to determine whether any is suitable for the reader.
The article states that the 2026 QCD limit is $111,000. A QCD is a direct transfer from an IRA to an eligible charity and can count toward an RMD while reducing adjusted gross income, subject to eligibility and tax rules. The figure is specific to the year cited in the source and should not be treated as a limit for other years.
“I would not say that this person missed a Roth conversion opportunity.”
— Al Kingan, estate and business planning executive with MassMutual, as quoted by Kiplinger
Personal Tax Costs Remain Unknown
The source gives no details about the reader’s account balance, other income, tax filing status, state, health, Medicare enrollment, beneficiaries or charitable plans. Without those facts, it is not possible to calculate whether a conversion would push the reader into a higher tax bracket, change IRMAA premiums, or produce a net benefit for heirs. The report’s example of converting $50,000 a year is illustrative; it does not confirm that this amount would fit the reader’s circumstances.
The article also does not establish that life insurance will be available at an affordable cost, or that the reader’s heirs will face a particular tax rate. QCD eligibility and the treatment of inherited assets depend on applicable rules and facts. Tax thresholds, Medicare premium brackets and laws can change, so the cited 2026 limit should be checked against current official guidance before action.
Review Options Before Each RMD
The report’s next step is individualized planning, not a blanket conversion. A retiree considering this approach would need to compare projected taxable income and Medicare premiums with and without a conversion, after accounting for the RMD that must be taken first. That review can be repeated annually as account values, income, tax rules and family circumstances change.
Kingan also suggests coordinating the inheritance with beneficiaries’ tax situations, potentially leaving traditional IRA assets to beneficiaries in lower tax brackets and Roth or other assets to those in higher brackets. That is a planning example, not a guarantee of tax savings. Readers should check current IRS and Medicare rules and discuss the options with a qualified tax or financial professional before making an irreversible conversion or changing an estate plan.
Key Questions
Can I convert traditional IRA money after RMDs begin?
Potentially, yes. The report says an account owner must take the year’s RMD first; that required distribution cannot be converted. Additional eligible funds may be converted, with tax consequences that depend on the person’s circumstances.
Will a Roth conversion raise my Medicare premiums?
It can affect income used to determine IRMAA premiums, depending on the amount converted, other income and the applicable Medicare rules and thresholds. The source does not calculate the effect for its reader.
What is a qualified charitable distribution?
A QCD is a direct transfer from an eligible IRA to a qualified charity. Subject to the rules, it may count toward an RMD and reduce adjusted gross income. Kiplinger’s report cites a $111,000 limit for 2026.
Do heirs have to withdraw an inherited traditional IRA within 10 years?
The report says non-spouse heirs generally must empty an inherited IRA within 10 years. Rules can vary by beneficiary and account details, so heirs should confirm the requirements that apply to them.
Source: kiplinger.com
