The SECURE Act was recently enacted by Congress. There are several new rules pertaining to retirement such as new Required Minimum Distribution (RMD) ages, inherited IRA provisions, and accessing your IRA money for certain expenses. One of the planning opportunities that arises with the new law is potentially doing more Roth IRA conversions for retirees.

If you are retired, but under the RMD age (now age 72), it can make sense to convert some of your IRA balance to a Roth IRA. In retirement, your income usually goes down (compared to your working years). Because of this, retirees can often convert IRA money to a Roth IRA at a lower rate and maximize their lifetime wealth.

The new SECURE Act pushes the age to start RMDs from age 70.5 to age 72. This gives clients more time to do Roth conversions before RMDs begin. The delayed RMD age coincides with the fact that tax rates are extremely low right now.

If you are near retirement (or in retirement) and want to see if a Roth conversion makes sense for you, give us a call!

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