The Ultimate Traditional vs. Roth 401(k) Strategy
The Money with Katie Show
00:00
How to Avoid RMDs
The most compelling argument in favor of Roth is that of RMDs because once you turn 73 the government looks the size of your pre-tax bucket and they say all right you got to start withdrawing more and paying taxes on it. One way to avoid RMDs is by converting your pre- tax funds to Roth once you retire or in other low-income years. If you are married filing jointly your standard deduction in 2023 is twenty seven thousand seven hundred dollars if you retire at age 55 you now have 18 years to perform Roth conversions worth an inflation adjusted twenty seven thousand 7 hundred dollars at a low or zero percent tax rate.
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