RMDs vs Roth conversions: The surprising upside of RMDs that most US retirees miss. Don't make the wrong choice in 2026

Core Insights - Required Minimum Distributions (RMDs) are often viewed negatively, seen as a financial burden that retirees should avoid [1][2] - Roth conversions are generally perceived as a smart financial strategy, allowing individuals to pay taxes upfront and benefit from tax-free growth [1][2] Group 1: RMDs Reputation - RMDs are mandated by the IRS for individuals aged 73, requiring withdrawals from pre-tax retirement accounts like 401(k) plans and traditional IRAs [3] - The lack of control over withdrawals is a significant concern for many retirees, leading them to prefer Roth conversions [3] Group 2: RMDs in Retirement - By age 73, retirees are typically more experienced in managing their retirement budgets and may have already depleted some of their savings [4] - For some retirees, RMDs can provide psychological relief and may not be viewed as a financial disaster [4] Group 3: Benefits of RMDs - RMDs can encourage retirees to access funds they might otherwise hesitate to use, serving as a mechanism to promote spending [5] - A significant portion of retirees experience anxiety about spending their own money, with 46% expressing this concern [6] - Many retirees lack knowledge about managing RMDs, with nearly 49% unsure how to handle them, indicating a need for better financial education [7]