Roth Conversion at 56: $4M IRA, Single

A Roth conversion moves money from a traditional IRA (where withdrawals are taxed as ordinary income) into a Roth IRA (where growth and qualified withdrawals are tax-free). You pay tax on the converted amount today to avoid a larger bill when required minimum distributions begin.

For single filers, the urgency is sharper. The 22 percent bracket ceiling is $100,525 in 2026 — half the married ceiling — so each conversion year fills that space faster. Single filers also hit the threshold where 85 percent of Social Security becomes taxable at lower incomes than married couples, and IRMAA surcharges begin at $106,000 in prior-year MAGI versus $212,000 for married filers.

Required minimum distributions at 73 add to ordinary income, narrowing the conversion window progressively. The years between retirement (or a significant income drop) and age 73 are the prime window: income is lower, brackets are wider relative to RMD obligations, and every converted dollar gets more years of tax-free compounding before the RMD clock starts.

Every year of delay is one less year of tax-free growth on converted dollars — and one more year the traditional balance grows under the RMD shadow. Converted dollars compound freely; unconverted dollars compound toward a forced distribution.

These pages assume 6 percent annual return, $18,000 Social Security income, bracket-filling to 22 percent each year before 73, and model to age 90. Your actual results depend on your income, SS benefit, and full tax picture.