Joint filers can convert up to $100,800 in traditional IRA funds at a 12% tax rate before RMDs begin at age 73.
Retirees aged 62 to 73 face a unique 11-year period where delayed Social Security and pre-RMD income create optimal conditions for Roth IRA conversions. In 2026, joint filers can convert up to $100,800 from traditional IRAs at a 12% tax rate, avoiding higher rates later when required minimum distributions and Social Security benefits stack up.
This window exists due to the alignment of three key rules: Social Security benefits can be delayed until age 70 for an 8% annual increase, RMDs from traditional retirement accounts do not begin until age 73, and wage income typically ceases. Most retirees miss the opportunity by claiming Social Security early or failing to plan for conversions during this low-tax period.
Each Roth conversion triggers a separate 5-year penalty-free withdrawal clock, making early conversions advantageous even with small initial contributions. The strategy aims to minimize lifetime tax liabilities but requires proactive planning.