Roth conversions will bring my income up to $400K. I’m 68. How much should I move over?

I am married, retired and 68 with an income of $200,000 a year between my pension, Social Security and investments. Everything is pretty much paid for, and we are clearly bringing in more than we spend.

My question is how much should I convert in my 401(k) every year prior to turning 73 when required minimum distributions kick in?

I know all about taxes, Medicare, growth rate, inflation, Roth conversions, etc. I am leaning toward getting the total down to about $2 million by 2030. That would be around $400,000 per year.

What should I do?

Wealthy Retiree

Related: What’s our FIRE number? We make $475,000 together and have more than $2 million saved

This is a tough one, since of course the more you convert each year, the higher your tax liabilities will be. At the same time, required minimum distributions are another pressure point come tax time, and it makes sense that you want to lower the amount you’ll have to take then.

The Internal Revenue Service recently announced the newest inflation-adjusted rates for tax year 2026, so I’ll use that. (Here are the tax rates for money you earn in 2025, if you want to look at those too.) This information will help you determine how much you should convert without pushing yourself into a higher tax bracket.

Below are the tax rates for 2026. The lowest rate is 10%, which applies to single taxpayers with incomes less than $12,400 and married filing joint taxpayers with incomes less than $24,800.

From this, you can get a grasp on where your combined income falls, and how much wiggle room you have. For example, if the $400,000 you’re referring to includes any income from your wife too, and you file married and jointly, you’re pretty much at the top of the 24% tax bracket. If your income were to be just over $403,000, you’d be in the 32% bracket, at which point, you could push your withdrawals to get you to a little more than $500,000, since you’re still in the same bracket up until about $512,000.

Every dollar counts, of course, so if you’re not entirely sure of how your actions will impact your tax brackets, or you want to try to get as close to the dollar amount as you can without going over to the next bracket by even a cent, I would suggest you consult a qualified financial planner with tax expertise or a trustworthy accountant who could help you crunch the numbers.

You might find that you still don’t want to take your required minimum distributions when the time comes, which is a feeling many wealthy retirees have. In that case, there are a few more options.

Having a robust Roth account is one way, which you’re already tackling. Another is to look toward charitable giving. For instance, qualified charitable distributions (or QCDs) that are made from your IRA will satisfy the RMD rule, meaning you can make the donation using what would have otherwise been your RMD and you won’t have any tax consequences from it. Here is more from the IRS on qualified charitable distributions.

You can give money to loved ones in meaningful ways. The actual distributions would still be taxable, but then you can make tax-savvy moves that will support your family in the long run. For example, if there are any children in your life, you can help fund 529 plans for them, which is a tax-advantageous investment account earmarked for education expenses. You could also create a solid estate plan for heirs that would reduce any tax liabilities they may have later in life.

You may also want to use this as an opportunity to plan for some big expenses you and your wife may have, such as a new car, major home renovations (especially if you plan to age in place) or something else you’ve always wanted in your retirement years. Again, the distribution would be taxable, but you can then place the money in a high-yield savings account. “This will keep your money liquid, but will at least allow you to earn some interest until you need the funds,” Clerestory Advisors said in a blog post about using RMDs.

What you’re doing now is the right move – you’re planning for RMDs, and that’s the most helpful thing you can do for yourself. While it might seem like a headache to have to move all of this money around and pay taxes on it, it’s wonderful that you’ve amassed so much and I’m sure with a little more consideration you’ll set yourself and your family up for a very comfortable retirement.