I'm 69 With $815k in a 401(k) and Receiving Social Security. Can I Still Convert to a Roth IRA?

Core Insights - Roth conversions allow the transfer of funds from tax-deferred accounts like 401(k)s to Roth IRAs, requiring current tax payments but enabling tax-free withdrawals later [4][5][6] - The decision to convert should consider future tax rates, as higher rates may make current conversions less advantageous [2][7] - Roth accounts are exempt from Required Minimum Distribution (RMD) rules, providing flexibility in retirement fund management [4][8] Group 1 - Roth conversions can lead to significant current tax bills due to the requirement to pay taxes on converted amounts [5] - Withdrawals taken within five years of conversion may incur penalties, suggesting that only funds not needed for at least five years should be converted [6] - Predicting future tax rates is challenging, and current lower rates may not remain, impacting the timing of conversions [7] Group 2 - To avoid RMDs, one must completely empty their 401(k), but partial conversions can provide a mix of taxable and tax-free withdrawal options for better tax planning [8]