This article was originally published on Sixty and Me and is republished here with permission. Read the original article here.

For the last few years, it felt like someone was always talking about Roth conversions. Whether it was finance shows on TV, newsletters, or seminars, this message was a constant: “Convert now while tax rates are low. Time is running out!”

This was likely motivated by the Tax Cuts and Jobs Act of 2017 (TCJA), which made many changes to our tax system, including lowering federal income tax brackets. But since these tax cuts were scheduled to end on December 31, 2025, many people rushed to move money from their traditional Individual Retirement Accounts (IRA) into Roth IRAs in order to “lock in” low tax rates before time runs out.

But as often happens, especially with tax law, the rules changed.

This summer, Congress passed the One Big Beautiful Bill Act of 2025 (OBBBA), which made the temporary lower tax brackets permanent. That one change has altered the landscape around Roth conversions.

So, what does this mean for people over 60 or those nearing retirement who want to make well-thought-out and smart decisions about their retirement money? Let’s go step by step.

A Quick Look Back: Why Was There So Much Emphasis and Discussion About Roth Conversions

Under the old 2017 tax law, the lower tax brackets were only going to last until 2025. This resulted in media and financial professionals urging people to convert as much as they could before the 2025 deadline, because once you put money into a Roth IRA, you get:

• Tax-free growth
• Tax-free withdrawals (once rules are met)
• Reduction of future taxable income.

These are all great benefits that even I want.

But putting the cart before the horse, or in this instance the marketing, should not overshadow the bigger picture. And that is, Roth conversions work best when they are part of a long-term strategy as opposed to racing against the clock.

The 2025 Update to the Tax Law: What Changed with the OBBBA

The OBBBA made many changes to our tax system, including making the 2017 lower tax brackets permanent. There is no more countdown clock that turns to zero on December 31, 2025.

This does not mean that Roth conversions no longer have a place in the retirement planning process. It simply means the “sense of urgency” to convert large swaths of money from traditional to Roth in a short timeframe is now gone. One can now take a breath and take a step back to determine if a slow, steady, intentional conversion process is a better fit for one’s long-term tax picture.

For many nearing and in retirement, this is a welcome shift.

Why Might Roth Conversions Still Matter After 60

Although Congress has removed the deadline, Roth conversions can still offer potential benefits, and now there is more time to create a thoughtful approach. Here’s how:

They May Reduce Future Required Minimum Distributions (RMDs)

The start of RMDs can increase income enough for some people that they end up in a higher tax bracket in their 70s and 80s. But reducing the traditional IRA balance before RMDs start can help decrease that rise in income.

They May Lower Future Taxes for a Surviving Spouse

Many married people file taxes as married filing jointly. But the surviving spouse will likely need to file as single, which can result in higher taxes even on the same income. Slowly converting the traditional IRA balance earlier can help lessen this shift.

They May Provide Flexibility for Future Spending

Having three account types – traditional (made with pre-tax dollars), Roth (made with after-tax dollars), and taxable accounts (after-tax dollars) – gives you more options. You can decide where to pull money from and how much from each account based on each year’s tax situation.

They May Help If You Plan to Leave Money to Beneficiaries

Leaving a Traditional IRA to heirs in very low tax brackets can make sense. But many people prefer leaving Roth IRA assets because the withdrawals by beneficiaries are tax-free (assuming the rules are followed).

The key word with all of these is “may.” This is because none of these benefits are guaranteed, as tax laws can always change, but these are reasons many people consider Roth conversions.

Ages 60–72: A “Golden Window” for Tax Planning

There are many tax planning opportunities throughout life, but for many people the years between retiring and beginning RMDs can result in a unique planning opportunity. During this phase in life:

• Income from work may have decreased
• Social Security benefits may not have started
• RMDs haven’t started
• Overall taxable income may be lower now than later in retirement

Any or all of these can allow one to start partial Roth conversions without necessarily being pushed into a higher tax bracket. Sure, not everyone has this “golden window,” but if you do, it can be helpful.

Why Multi-Year Tax Planning Is So Important

Now that there is no longer a concern about income taxes increasing at the end of 2025, one can focus on their individual strategy.

A multi-year plan allows one to look ahead at:

• What might their income be at age 62, 67, or 73?
• What is the best age to start collecting Social Security?
• When RMDs begin, what tax bracket could one be in?
• What are the estimated healthcare costs?
• Does one prefer paying taxes now or later?

This type of roadmap can help bring clarity.

A yearly tax review can help you stay on the road.

Although there can be big shifts in income, say when you retire or when you start RMDs, there can also be smaller income shifts from year to year. That’s why many people reevaluate Roth conversions yearly, often in November or December when they have a clearer picture of:

• Total income
• Tax bracket
• IRMAA threshold
• How much “room” the have for a Roth conversion without going into a new tax bracket or IRMAA threshold.

While tax planning software can’t predict the future, many financial planners who focus on tax planning can help estimate their clients’ likely Modified Adjusted Gross Income (MAGI) and how different Roth conversion amounts might affect their tax bracket or Medicare premiums.

And this yearly review can help support staying on one’s multi-year strategy.

The IRMAA Cliffs: It’s Not Just Tax Brackets to Think About

I often hear people talk about staying in a certain tax bracket, but there is another important factor: Income-Related Monthly Adjustment Amount (IRMAA).

IRMAA is the Medicare surcharge that increases your Part B and Part D premiums based on your income. But unlike income tax brackets, IRMAA thresholds have a cliff, which means even one dollar over can result in higher Medicare premiums for the entire year.

So, planning should look at not only avoiding higher taxes but also avoiding other surprises like higher healthcare costs.

What a Well-Thought-Out Conversion Strategy Can Look Like

Now with the new tax law making the current lower rates permanent, there is more time to reflect on what is appropriate, but more importantly, what you are comfortable with. A thoughtful approach might include:

• Smaller Roth conversions over multiple years.
• Staying in a certain tax bracket.
• Staying in a certain IRMAA threshold.
• Aligning Roth conversions with Social Security decisions.
• Reflecting on what the surviving spouse will need.
• Thinking about legacy planning and what you want to leave.

Not only should the right plan look at multiple years as opposed to the current tax year, but it should also support your individual life and long-term goals. And if you aren’t sure about the numbers, a financial planner who focuses on tax and estate planning can go over the numbers to help you think things through.

A Few Questions to Think About

• Looking forward, are there any years where I might have lower income and more tax planning opportunities?
• How close am I to the next tax bracket and next IRMAA threshold?
• Once I start RMDs, how will my taxes change?
• Would I feel more comfortable with gradual Roth conversions as opposed to large ones?
• If I’m married, what would my spouse’s tax situation look like if I pass first?
• What, if any, assets do I want to leave to my beneficiaries?
  Does planning out multiple years provide more confidence and clarity?