Am I too old for Roth conversions? I’m 84 and my wife is 77. We have $8 million saved.
Quentin FottrellThu, August 27, 2026 at 1:30 AM GMT+3 8 min read
I'm 84 and my wife is 77, and we are both fully retired. We have no significant financial obligations beyond routine monthly expenses such as food, utilities, taxes, insurance and so forth. Our largest expenses are required minimum distribution-related taxes and annual real-estate taxes, which together run about $7,000 per year.
Our combined net worth is approximately $8 million, most of which is held in separate traditional IRAs — two in my name and two in my wife's name. Our annual income comes from Social Security, RMDs and monthly pensions from previous employers. Our pensions total about $2,200 per month.
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After taxes, we reinvest approximately half of our RMDs in a taxable brokerage account. The other half goes into a bank account from which we pay our expenses; it normally maintains a balance of about $45,000. We simply don't seem to need much money. Our relatively minor healthcare expenses are covered by Medicare and Medigap policies.
Once burned
We have a CPA, but we primarily use him for preparing our taxes. Years ago, we gave a major bank $20,000 to invest as they saw fit. After losing $10,000 within four months, we took control of the account ourselves. As a result, we are reluctant to pay a financial adviser 2% of assets — roughly $160,000 per year.
We initially thought a conversion meant paying taxes when withdrawing money from the traditional IRA and then effectively paying taxes again when contributing the money to the Roth. We have since learned that this isn't how Roth conversions work, and that the tax cost may be considerably less than we originally assumed.
Given our ages and circumstances, is there an advantage to making conversions? My family history is mixed. I have already outlived my male predecessors by about six years — the oldest died at 78 — and I suspect I may not have many years left. My wife's female relatives, however, have generally been quite long-lived, often living into their 90s while retaining clear minds.
More broadly, are there tax-planning strategies or other financial considerations that someone in our situation should be looking at? We are not looking for someone to manage our investments for a 2% annual fee; rather, we would be interested in paying a qualified professional for objective, one-time or periodic advice on tax-efficient strategies, and estate planning.
Retired Couple
You're never too old to review your finances, and you're not the only reader with this predicament.
However, at 84, I would not describe a Roth conversion as an obvious tax-saving opportunity for you. It may still be worthwhile as an estate-planning strategy, particularly if your beneficiaries are likely to be high earners. The window in which conversions could have been especially valuable to you personally has largely passed. Assuming you retired in your 60s, you've gone more than 20 years without a Roth conversion. Why now? Are you concerned about predeceasing your wife? Do you have heirs? If they are high earners, conversions may be worth at least considering. That said, it's never a bad idea to take stock of your portfolio.
Your main priority now should be planning for the surviving spouse who could face fewer standard deductions, narrower tax brackets and even higher Medicare premiums. Plus, the surviving spouse may not have the same financial know-how; couples often forget about that part of the puzzle. What happens to the IRAs when one of you dies? Will the survivor's filing status change from married filing jointly to single, potentially pushing them into higher tax brackets? How much will the surviving spouse's RMDs be? And will the surviving spouse be as comfortable managing $8 million alone as you are managing it together?
You pay taxes when you withdraw the money from your IRAs, and not when you deposit the money in your Roth IRAs. Yes, you pay taxes once. That does not mean you need to fill your tax bracket every year. Roth conversions make sense during low-income years to reduce taxes you pay on your RMDs, but with $8 million in IRAs, I don't see a low-income window left. Your RMDs alone may already have you near the top of the tax brackets.
You can convert a portion of your traditional IRA each year when it suits, or even make multiple conversions throughout the year, while staying within your desired tax bracket. Good times to make such a decision are later in the year, when you know exactly how much income you have during the tax year, and/or during a market downturn, converting the same number of shares at a lower tax rate, hoping that the market recovers once again.
Your CFP should stress test two scenarios: conversions and no conversions. The SECURE Act forces most non-spouse heirs to empty an inherited traditional IRA within 10 years — no stretching withdrawals over their lifetime. An $8 million traditional IRA left to your heirs means a decade of large, mandatory taxable distributions in addition to their own income. A Roth conversion probably helps with that: Heirs still have 10 years, but they can withdraw on their own timeline, tax-free.
Tax-free inheritance
I get it. You were burned by an adviser who lost $10,000 of your hard-earned money. But don't allow that to spook you from seeking out help from other professionals. A CFP who specializes in tax planning could certainly help you decide, and your annual income and Social Security checks will also play a factor (you can tell the CFP; you don't have to tell me). They will do the math, not tell you to buy/sell stocks. Sure, keep managing your own investments.
In the meantime, ask your CFP about helping you prepare your taxes for when one of you dies. Danny Gudorf of the Gudorf Financial Group in Dayton, Ohio, discussed this issue on "The Limitless Retirement" podcast. "One of the most significant advantages of a Roth conversion, regardless of age, is the ability to leave a tax-free inheritance to your loved ones," Gudorf says. "This benefit becomes even more valuable as you enter your 70s and start thinking more seriously about your legacy."
"By converting a portion of your traditional IRA to a Roth IRA, you're essentially giving your beneficiaries a gift that keeps on giving," he adds. "They'll be able to withdraw funds tax-free without worrying about the impact on their own tax situation. This is especially important when your beneficiaries are already in medium to high tax brackets. Moreover, a Roth IRA can be a powerful estate-planning tool."
The answer should not be dictated by IRMAA alone. Nor should it be dictated by your RMDs. Or even your monthly income. Your case is more about weighing the 10-year inherited-IRA rule than about paying tax at your current top bracket. Technically, you have missed the most tax-efficient window for bracket arbitrage, which occurs after retirement and before Social Security and RMDs — but that's still a different question from whether conversion still makes sense for your heirs.
You will also need to keep an eye on your Medicare premiums, which are in part based on your income. Eligibility for your ACA health-insurance subsidies and IRMAA surcharges is based on your modified adjusted gross income (MAGI). Withdrawals from traditional IRAs and 401(k)s count as taxable income, while qualified withdrawals from Roth accounts don't count toward MAGI. Capital gains, dividends and interest on your taxable brokerage account are included.
As for Roth conversions, I hope your question helps other readers start that conversation with a CFP before it's too late.
Related:My son does not work, yet pays $500 for Affordable Care Act health insurance. Is that fair?
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