Roth Conversions in 2025: How to Use the Pre‑RMD Window Wisely

When I sit with clients in their sixties, one question comes up again and again. Should I be converting some of my traditional IRA to a Roth before Required Minimum Distributions (RMD) begin? The years between retirement and the start of required minimum distributions can be a rare window of opportunity. You may have lower taxable income than you did while working, but you haven’t yet started Social Security or full RMDs. That’s when Roth conversions often make the most sense.

Why the window matters

Once you reach the RMD age, you can’t use that year’s RMD for a conversion. You also lose some flexibility because the distribution itself pushes up your taxable income. That’s why the years right after retirement are so important. Converting during this window often allows you to “fill up” lower tax brackets with controlled conversions.

I’ve seen this help clients keep Medicare premiums lower in the long run and reduce the chance of bumping into higher brackets later. A conversion today can also protect you from the scheduled expiration of current tax brackets after 2025, when rates may rise if Congress doesn’t act.

Managing the tax hit

A Roth conversion is taxable in the year you do it, so it’s not a free move. The art is in converting the right amount. Sometimes that means filling the 22 percent bracket without spilling into the 24. Other times it’s about coordinating with charitable giving so deductions offset some of the income. In California, we also need to account for state income tax. For some clients, that means withholding enough to avoid underpayment penalties without taking more than needed.

I encourage clients to think about the conversion not as a one‑year event but as a multi‑year strategy. We spread it out, doing manageable amounts each year, and keep an eye on other income sources like pensions, rentals, or capital gains.

Coordination with Social Security and Medicare

The timing of Social Security benefits matters. If you can delay claiming, you often create more room for conversions. Once Social Security starts, each additional dollar of income can make more of your benefit taxable. Medicare is also sensitive. Higher modified adjusted gross income can mean higher premiums two years down the road. That’s why we model the impact, not just this year but two, five, and ten years out.

Estate and legacy considerations

Roth assets don’t have RMDs for the original owner. For heirs, the accounts are still subject to the ten‑year distribution rule under the SECURE Act, but tax‑free withdrawals are a powerful gift. For clients who want to leave flexibility to children or grandchildren, a Roth can be much more attractive than a traditional IRA. In California, where property and state income taxes are already high, leaving heirs tax‑free Roth dollars can be an important estate planning choice.

Putting it into practice

The process usually begins with a tax projection. I’ll pull prior returns, estimate this year’s income, and test different conversion amounts. We look at how it changes your bracket, your Medicare premiums, and your long‑term tax path. Then we make a plan for withholding or estimated payments so you’re not surprised next April.

I don’t view a Roth conversion as an all‑or‑nothing decision. It’s about shaping the slope of your tax picture. Done thoughtfully, it can make your retirement income smoother, your estate plan cleaner, and your family’s financial life easier.

Why work with Oak Summit

This is not a one‑size‑fits‑all move. It takes careful modeling, tax awareness, and investment discipline. At Oak Summit Wealth Management, I combine my training as a Chartered Financial Analyst (CFA) Charterholder, a Certified Financial Planner (CFP), and an Enrolled Agent (EA) to weigh every side of the decision. Because I’m a fee‑only fiduciary, my role is to help you choose the path that truly benefits you and your family.

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