Guide
How to lower the tax on your RMDs: convert before they start
By Secure Retirement PlannerUpdated
You can't legally avoid tax on your required minimum distributions (RMDs), which start at 73 or 75. But if yours haven't started yet, converting part of your IRA to a Roth now can shrink them and the tax on them. Your RMDs start at 73 if you were born 1951 to 1959, and at 75 if you were born in 1960 or later. So if you were born in 1960 and retire at 65, you have about 10 years to convert first.
If you are retired, the years before RMDs are often your cheapest years to convert. Your taxable income is usually at its lowest then. An RMD is the amount the IRS makes you withdraw from your traditional IRAs and 401(k)s each year. It grows as a share of your balance every year. Converting earlier shrinks the balance your future RMDs are figured on, and it can ease the tax squeeze later.
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The short version
- Your RMDs start at 73 or 75, depending on your birth year.
- The RMD divisor shrinks each year: 26.5 at 73, 20.2 at 80 and 12.2 at 90.
- Your low-income years before RMDs and before Social Security can let you convert at 10% or 12%.
- From 63 on, a conversion can raise your Medicare premiums two years later.
- Converting isn't always the right call for you. It depends on your future tax rate and your heirs.
How can I reduce taxes on my RMDs?
You can't skip the tax. Each RMD from a traditional IRA or 401(k) is taxed as ordinary income, except any after-tax money you put in. What you can do is make your RMDs smaller, or send some of that money out in ways that cost less tax. To see what your RMDs could be, try RMD calculator.
- Convert to a Roth before your RMDs start. Roth IRAs have no RMDs for you, and each dollar you convert is a dollar your future RMDs aren't figured on. This is the main subject of this page.
- Give through QCDs from age 70½. A qualified charitable distribution sends IRA money straight to a charity. It counts toward your RMD and stays out of your taxable income. See QCD rules and Roth conversions.
- Use a QLAC. A qualifying longevity annuity contract is a deferred income annuity bought inside your IRA or 401(k). For 2026 you can put up to $210,000 into one. That money is left out of the balance your RMDs are figured on until payments start, which must be by 85.
- Withdraw a little earlier, in low-bracket years. Taking IRA money out in your 60s at 10% or 12% lowers the balance your RMDs are figured on. A conversion usually does the same job better, because the money then grows tax-free in a Roth.
- Keep working, for your 401(k). If you still work past your RMD age and don't own 5% or more of the company, your current employer's plan can let you delay RMDs until you retire. This doesn't apply to IRAs.
Before you buy a QLAC
A QLAC's income is backed by the financial strength and claims-paying ability of the insurer. It is not FDIC insured. Once your RMDs begin, the rules don't let it offer a cash surrender right, so treat that money as tied up for good.
When do RMDs start for me?
Under the SECURE 2.0 Act, your start age depends on your birth year. It's 73 if you were born 1951 to 1959 and 75 if you were born in 1960 or later.
Your first RMD can wait until April 1 of the next year. But if you wait, you take two RMDs in that second year. That can push you into a higher bracket.
| Born in | RMD age | Year you reach it | First RMD due by |
|---|---|---|---|
| 1953 | 73 | 2026 | April 1, 2027 |
| 1955 | 73 | 2028 | April 1, 2029 |
| 1959 | 73 | 2032 | April 1, 2033 |
| 1960 | 75 | 2035 | April 1, 2036 |
| 1962 | 75 | 2037 | April 1, 2038 |
Why do RMDs get bigger every year?
Your RMD is your December 31 balance from last year divided by a number from the IRS Uniform Lifetime Table. That number gets smaller as you age, so the share you must take out goes up.
At 73 you take out about 3.8% of your balance. At 90 it's about 8.2%. If your account keeps growing, your dollar amount can rise even faster.
| Age | Divisor | Share of balance | RMD on a $500,000 balance |
|---|---|---|---|
| 73 | 26.5 | 3.77% | $18,868 |
| 75 | 24.6 | 4.07% | $20,325 |
| 80 | 20.2 | 4.95% | $24,752 |
| 85 | 16.0 | 6.25% | $31,250 |
| 90 | 12.2 | 8.20% | $40,984 |
What is the RMD tax bomb?
It's the name people use for the year your RMDs, Social Security and any pension all land at once. Each one is taxable. Together they can push you into a higher bracket than you had in your 60s.
It gets worse after a spouse dies. If you are the survivor, you usually file as single starting the year after the death. Your brackets are about half as wide, while your RMDs keep coming on the same balance. See Widows and widowers.
Your higher income can also trigger Medicare surcharges (IRMAA) and make up to 85% of your Social Security taxable. None of this is a penalty. It's the normal tax rules applied to larger withdrawals.
How much should I convert each year before RMDs?
You can convert up to the top of a bracket you're comfortable with. For 2026, the 12% bracket ends at $100,800 of taxable income for couples and $50,400 for single filers. The 22% bracket ends at $211,400 and $105,700.
Two other lines matter to you. From 63 on, watch the Medicare IRMAA line ($218,000 couple, $109,000 single for 2026 premiums). And if you're 65 or older, your $6,000 senior deduction per person shrinks once your income passes $150,000 (couple) or $75,000 (single). That deduction is scheduled to end after 2028.
You'll find the full method in How much to convert each year.
Can I still do Roth conversions after RMDs start?
Yes. There is no age limit on converting. The catch is that your RMD for each year must come out first, and you can't convert the RMD itself.
So after your RMDs start, your conversion is added on top of an RMD you can't avoid. That's why the years before RMDs usually give you more room in the lower brackets.
When is converting before RMDs a bad idea?
Converting means you pay tax now to save tax later. It may not pay off for you in these cases.
- You expect a lower tax rate later, for example because your IRA is small and your RMDs will be modest.
- You'd have to pay the tax out of your IRA itself, which leaves less to grow in your Roth.
- You plan to leave your IRA to charity. Charities pay no income tax, and after 70½ you can give from your IRA directly with a qualified charitable distribution.
- Your heirs are likely to be in a lower bracket than you are now.
- You're under 65 and buy health insurance on the ACA marketplace. Higher income can cut your premium tax credit.
Example: a couple born in 1960 using the window from 66 to 69
Mike and Diane are both 66 in 2026. They have a $40,000 pension, $5,000 of interest and a $900,000 traditional IRA. They plan to claim Social Security at 70, and their RMDs start at 75, in 2035.
With no conversion, their deductions ($32,200 standard, $3,300 for being 65+, and the $12,000 senior deduction) wipe out their taxable income. Say they convert $100,000 a year from 2026 to 2029. Their federal tax goes up by about $11,204 a year for 2026 to 2028. In 2029 it rises by about $12,564, because the senior deduction is scheduled to end after 2028. That's about $46,176 in total.
Their income stays at $145,000, below the $218,000 Medicare IRMAA line for 2026. The table shows how the conversions change their first RMD.
If your situation looks like Mike and Diane's, your years before Social Security and RMDs may be your cheapest time to convert. Using them can mean smaller RMDs for you later, though you pay tax sooner.
| No conversions | Convert $100,000 a year, 2026 to 2029 | |
|---|---|---|
| Added federal tax, 2026 to 2029 | $0 | about $46,176 |
| Traditional IRA on Dec 31, 2034 | about $1,396,200 | about $846,100 |
| First RMD at 75 (2035) | about $56,800 | about $34,400 |
| Roth IRA on Dec 31, 2034 | $0 | about $550,100 |
Hypothetical example. Assumes 5% yearly growth, conversions at year end, tax paid from savings, and 2026 federal brackets and deductions for every year (in reality brackets adjust for inflation). It ignores state tax and the Social Security they plan to claim at 70, which would raise the tax on any later conversions. The tax money paid from savings would also have earned something. Your numbers will differ.
Common questions
What age do RMDs start in 2026?
Age 73 if you were born 1951 to 1959, and age 75 if you were born in 1960 or later. If you were born in 1953, you reach 73 in 2026.
Can I convert my RMD to a Roth IRA?
No. Your RMD for the year must come out first and can't be rolled over or converted. After it's out, you can convert more.
Is it too late to convert once I'm 73?
No. There is no age limit. You just have to take your RMD first, so your conversion stacks on top of income you already have.
Do Roth IRAs have RMDs?
Not for you as the original owner. Roth 401(k)s also have no lifetime RMDs starting in 2024. Your heirs who inherit a Roth do have withdrawal rules.
What happens if I miss an RMD?
The IRS can charge a 25% excise tax on the amount you didn't take. It drops to 10% if you correct it within the correction window.
Should I delay my first RMD to April 1?
Only after you check the tax. Waiting means two RMDs in the same year. That can push you into a higher bracket or a Medicare surcharge tier.
Sources
Facts on this page were last checked on November 9, 2026.
- IRS Publication 590-B, Distributions from IRAs · RMD start age, April 1 first deadline, Uniform Lifetime Table divisors, RMDs not eligible for rollover, 25% and 10% excise tax. Read Nov 9, 2026.
- IRS: Retirement plan and IRA required minimum distributions FAQs · RMD ages under SECURE 2.0 and Roth rules. Read Nov 9, 2026.
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments) · 2026 brackets and standard deduction. Read Nov 9, 2026.
- IRS Schedule 1-A (Form 1040), Additional Deductions · Senior deduction of $6,000 per person and 6% phase-out above $75,000 / $150,000 MAGI. Read Nov 9, 2026.
- CMS: 2026 Medicare Parts A & B premiums and deductibles · 2026 IRMAA thresholds. Read Nov 9, 2026.
- IRS Notice 2025-67 (2026 retirement plan and IRA limits) · QLAC premium limit remains $210,000 for 2026. Read Nov 9, 2026.
- 26 CFR 1.401(a)(9)-5 and 1.401(a)(9)-6 (QLAC rules) · QLAC payments must start by the first day of the month after the 85th birthday; no cash surrender right after the required beginning date; QLAC value left out of the RMD account balance under 1.401(a)(9)-5(b)(4). Read Nov 9, 2026.
Who wrote this
This guide was written and fact-checked by the Secure Retirement Planner editorial team using IRS, CMS and Social Security sources listed above. We update guides when the law or yearly limits change. How we research.