Converting a Traditional IRA to a Roth might sound straightforward once you understand the taxes involved, but if you're 60 and older, that upfront tax bill (and the bigger RMDs you’re trying to avoid) can feel like a serious gut punch.
It's no wonder so many in this age group pause and ask themselves: Is the Roth conversion really worth it?
Converting a Traditional IRA to a Roth IRA after age 60 can offer tax-free withdrawals, a tax-free inheritance for beneficiaries, and no required minimum distributions, all of which provide tax diversification and estate planning benefits.
That's the good news. On the other hand, the upfront tax cost of conversion can be substantial, with limited time to recover through tax-free growth. On top of that, the increased taxable income may lead to higher Medicare premiums or taxes on your Social Security benefits.
Why older savers should (or should not) consider Roth IRA conversions
Because traditional IRAs have been around longer, older savers are more likely to own a traditional IRA over a Roth IRA. Also, older savers may be wary of executing a conversion or may not know about this option. Still, if you're over 60, there's much to like about Roth conversions.
You can contribute to a traditional IRA at any age if you have earned income. But can someone aged 73 still roll over money from a traditional IRA to a Roth in retirement? Do you need to have earned income to make a successful conversion?
Is a Roth IRA conversion wise for those over 60? Let's break it down.
Who can convert a traditional IRA to a Roth IRA?
There's no age limit or income requirement to convert a traditional IRA to a Roth IRA. You must pay taxes on the amount converted, although part of the conversion will be tax-free if you have made nondeductible contributions to your traditional IRA.
Once the money is in the Roth, you can take tax-free withdrawals. (You may have to pay taxes on any earnings withdrawn within five years of the conversion, but only after you've withdrawn contributions and converted amounts.)
Possible financial consequences of a conversion
Because converting to a Roth can have a ripple effect on other areas of your finances, be careful before making a big conversion in one year. For instance, the conversion will be included in your adjusted gross income, which could bump some of your income into a higher tax bracket and could also cause you to pay more for your Medicare premiums and higher taxes on your Social Security benefits.
Social Security
The Social Security Administration (SSA) determines who pays an income-related monthly adjustment amount (IRMAA) based on the income reported two years prior. So, the SSA will examine your 2024 tax returns to determine whether you must pay IRMAA in 2026.
The extra income from the conversion could also increase the portion of your Social Security benefits that is subject to income taxes. So, if you're already drawing Social Security, a Roth conversion could increase your income enough to have an impact. This is one reason why it’s beneficial to convert a traditional IRA to a Roth when you're younger, before you're drawing Social Security.
Medicare
If your adjusted gross income (plus tax-exempt interest income) is more than $109,000 if you're single (or head of household, qualifying widow(er), or married filing separately in most cases) or $218,000 if married filing jointly (based on your tax return from two years prior), you will be required to pay the Medicare high-income surcharge (IRMAA) for Parts B and D.
See Medicare Premiums 2026: IRMAA Brackets and Surcharges for Parts B and D for more information.
This is the updated threshold for 2026 Medicare premiums (determined by your 2024 MAGI), per the official Centers for Medicare & Medicaid Services (CMS) announcement and the 2026 Medicare Costs fact sheet. The thresholds are inflation-adjusted annually, rising from 2025's $106,000 single or $212,000 joint levels.
If your MAGI exceeds these, you'll pay the standard premium, $202.90 per month for Part B in 2026, plus an IRMAA surcharge, which ranges from about $81.20 to over $487 for Part B, and $14.50 to more then $91 for Part D, depending on your income.
See What You Will Pay for Medicare in 2026.
The basic monthly premium for Medicare Part B is $202.90 in 2026, an increase of $17.90 from $185.00 in 2025.
Keep an eye on RMDs in the year you convert your traditional IRA
Keep in mind that rolling money over from a traditional IRA to a Roth after 70-½ won't reduce your required minimum distributions (RMDs) for the year of the conversion; the required withdrawal is based on your IRA balance as of the end of the previous year. But it can reduce your RMDs for future years.
Instead of making one big conversion, consider rolling over a portion of the money from a traditional IRA to a Roth every year, with a close eye on the top of your tax bracket and income limits for the Medicare high-income surcharge and Social Security taxes.
Why converting a traditional IRA to a Roth IRA after 60 might be right for you
If you're over 60, converting a traditional IRA to a Roth IRA can be a smart financial move. Roth IRAs offer tax-free withdrawals in retirement, which can benefit older savers who may expect higher future tax rates or who want to avoid RMDs. Another perk is that no earned income is needed for a conversion, so a 73-year-old can still roll over funds.
On the flip side, the conversion triggers immediate taxes on the converted amount, which may not help you financially, especially if funds are tight or tax rates are expected to drop. Older savers may hesitate due to tax concerns or simply because of a lack of awareness, but a Roth conversion could provide long-term tax advantages and estate planning benefits. Still have questions? Consulting a financial advisor is key to assessing personal goals.
