As a 60-year-old with $1.5 million in your 401(k), should you convert $120,000 per year to avoid Required Minimum Distributions (RMDs)?

Reported 5 months ago

Planning ahead for retirement income taxes, including required minimum distributions (RMDs), is crucial. Starting at age 60 offers time to strategize and avoid potential tax pitfalls. Converting a 401(k) to a Roth IRA gradually over 14 years can help minimize taxes, sidestep RMDs, and avoid taxes on new gains. Adjusting the conversion amount based on tax brackets and investment returns, with guidance from a financial advisor, can optimize tax efficiency and retirement planning.

As a 60-year-old with $1.5 million in your 401(k), should you convert $120,000 per year to avoid Required Minimum Distributions (RMDs)?

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