I'm 60 With $930K in an IRA and Taking Social Security. Can I Still Do a Roth Conversion?

Core Viewpoint - A Roth conversion is considered a strategic option for retirement income planning, particularly for individuals in lower tax brackets, as it can lead to tax savings in the long run [4]. Group 1: Roth Conversion Considerations - The individual is over 59 ½, which means they are not subject to the 10% early withdrawal penalty for distributions taken less than five years after a Roth conversion [3]. - There are three different five-year rules associated with Roth IRAs, which can lead to confusion [2]. - The primary reason for a Roth conversion is to save on taxes, especially for individuals with a stable income from pensions [4]. Group 2: Income and Tax Bracket Analysis - The individual has an annual income of $65,000 from a pension, placing them in a marginal tax bracket of 22% if single, or 12% if married filing jointly [5]. - Given the nature of pension income, it is unlikely that the individual's nominal income will decrease in the future, suggesting stability in their tax bracket [6]. - The Tax Cuts and Jobs Act provisions are set to expire at the end of 2025, which may lead to increased income tax rates unless Congress acts [7]. Group 3: Strategic Planning - It may be beneficial for the individual to gradually fill their current tax bracket with Roth conversions over several years [8]. - Consideration of state income taxes and potential relocation to a state without income tax is also advised [8].