Craig Wear, CFP, argues retirees should convert traditional IRAs to Roth now, even at higher tax rates. Waiting until your 70s triggers massive Required Minimum Distributions that spike Medicare costs and leave heirs with a taxable 10-year window to empty the account.
Your focus should not be on deductions. Your focus needs to be on how do I get the most tax benefit and the highest net worth. You simply have to convert at a higher tax bracket than you're probably comfortable with. And if you wait or you go small or you go slow, your RMDs are going to explode your taxable income when you get into your 70s. The annual growth alone on your IRAs is going to add significant future total tax that can't be overcome at a possible lower rate later. Your heirs are going to be forced into 10-year distributions and it's all taxable You got higher IRMAA penalties in retirement due to higher taxable income from RMDs. And look, waiting feels safe, but it's a trap. And I don't want you to fall into the trap.
