Craig Wear, CFP® argues that IRA millionaires should pursue a much more aggressive Roth conversion strategy to maximize lifetime tax advantages. He warns that required minimum distributions (RMDs) will push large IRA balances into higher tax brackets, increase Medicare premiums, and reduce flexibility for future withdrawals (for personal spending, family, or charitable/faith-based uses).
So look, if you're an IRA millionaire, a much more aggressive Roth conversion strategy is the only one that's going to truly maximize your tax advantages. Those required minimum distributions are going to push you into a higher tax bracket for the rest of your life. They're going to cause higher Medicare premiums for the rest of your life if you don't get that balance down. And it'll put you in a situation in each of these where you have very little flexibility over what happens when you want to take withdrawals for fun, for family, or for your faith.
