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

Group 1 - The article discusses the implications of Roth conversions for retirement funds, highlighting that while paying taxes on a conversion may not be beneficial for immediate living expenses, it can be advantageous for long-term growth and tax-free income for heirs [1][2] - Required Minimum Distributions (RMDs) are mandated by the IRS for pre-tax retirement accounts, with the starting age raised to 73 in 2023 and set to increase to 75 in 2033 under the SECURE 2.0 Act [3] - The purpose of RMDs is to ensure that taxes are eventually paid on pre-tax retirement accounts, while Roth IRAs are exempt from RMDs during the owner's lifetime, and Roth 401(k)s will also be exempt starting in 2024 [4][9] Group 2 - RMD calculations depend on age and account balance, with an example provided showing that a 75-year-old with a $1 million balance would have an RMD of $40,650 for the following year [6] - Roth conversions are considered by retirees to avoid RMDs, allowing for tax-free growth and withdrawals for beneficiaries, who must still adhere to distribution rules under the SECURE Act [9]