I'm 67 With $680k in My 401(k). Should I Convert to a Roth IRA to Avoid RMDs?

If you need retirement funds for living expenses now, paying taxes on a Roth conversion may cost more than it saves. But, if you plan to keep the money for growth or pass it on to heirs, a conversion can help you avoid future required minimum distributions (RMDs) and provide tax-free income for beneficiaries. To show how this could work, let’s consider the example of a 67-year-old with $680,000 in a 401(k) who will begin RMDs at age 73. If you are considering a Roth conversion, a financial advisor can help ...