Should I convert my IRA to a Roth?

It depends on your current and future tax brackets, how you'd pay the tax, your heirs, and Medicare premium effects. Conversions are often most attractive in lower-income years.

Which account should I withdraw from first in retirement?

There's no single rule. Many people draw from taxable accounts first, but blending withdrawals across account types can manage brackets better over time. It depends on your situation.

Retirement tax strategies

Keep More of What You've Saved: Tax-Aware Retirement Income

In retirement, it's not just how much you withdraw. Where it comes from matters too. Paul helps you plan withdrawals, required minimum distributions, and Roth conversions with taxes in mind, working alongside your CPA.

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What is tax-efficient retirement income planning?

Tax-efficient retirement income planning means deciding which accounts to draw from, in what order and in what amounts, to manage taxes over your whole retirement rather than just this year. It considers required minimum distributions, Roth conversions, the taxation of Social Security, and Medicare premium surcharges, coordinated with your tax professional.

The planning opportunities

Withdrawal order

Taxable, tax-deferred, and Roth accounts are taxed differently. The sequence you use can change your lifetime tax bill.

The "gap years"

The years between retiring and starting Social Security or RMDs can be lower-income years, which may be a good time for Roth conversions.

Required minimum distributions

RMDs begin at 73 (or 75 if born in 1960 or later). Large pre-tax balances can mean large forced withdrawals later.

Social Security taxation

Other income can make up to 85% of your benefits taxable.

Medicare premiums (IRMAA)

Higher income can raise Part B and D premiums two years later.

Qualified charitable distributions

From 70½, IRA owners can give directly to charity, and it can count toward RMDs.

Massachusetts considerations

The 4% surtax on income above about $1 million can affect large one-time conversions or sales.

How Paul helps

Paul builds tax considerations into your retirement income plan, shows the trade-offs of different withdrawal and conversion approaches, and coordinates with your CPA, who has the final word on your tax return.

Straight answers

Frequently asked questions

At 73 if you were born from 1951 to 1959, or 75 if you were born in 1960 or later. Missing one can trigger a penalty.

LPL Financial and its representatives do not provide tax or legal advice. Please consult your tax advisor.