When should a client convert to a Roth IRA?

The strongest signal for a Roth conversion is a client heading into a higher tax bracket in retirement — driven by RMDs, Social Security, and pension income compounding together. The ideal time to convert is before the client's Required Beginning Date, while there is still flexibility to control taxable income year by year. Break Analytics models the conversion amount, IRMAA exposure, and lifetime tax impact across 20+ years so advisors can identify the right conversion amount and timing for each client.

How does a Roth conversion affect IRMAA?

A Roth conversion increases MAGI in the conversion year. Because IRMAA surcharges are based on MAGI from two years prior, a conversion in 2026 can result in elevated IRMAA surcharges in 2028. CMS sets IRMAA premium thresholds annually. IRMAA surcharges can add thousands of dollars per person per year. Starting at age 63, every conversion year is included in the two-year lookback that determines Medicare premiums at 65 and beyond. Break Analytics models the IRMAA impact year by year so advisors can size each conversion precisely without crossing the next threshold.

How does a Roth conversion affect Social Security?

A Roth conversion is a distribution made to the Roth IRA. The converted amount increases MAGI in the conversion year. Depending on where combined income lands relative to the threshold, this can push a greater portion of Social Security benefits into the taxable threshold. Up to 85% of Social Security benefits can be subject to federal income tax under current law. Break Analytics models the Social Security impact in the conversion year alongside the income tax and IRMAA exposure so advisors can show the full picture before the conversion is completed.

Can a client convert an IRA to a Roth after RMDs begin?

Yes — with one important limitation. IRC rules require that RMDs cannot be converted. However, any balance remaining in the Traditional IRA after the RMD is satisfied is convertible. For clients with large Traditional IRAs, converting a portion of the remaining balance after the RMD can reduce future RMD amounts and the associated tax exposure, and may pass the remaining assets to beneficiaries generally tax-free under current law.

What is the IRMAA threshold for Roth conversions in 2026?

For married filing jointly filers, the first IRMAA threshold in 2026 is $232,000 in MAGI. A Roth conversion that pushes MAGI above this threshold can result in IRMAA surcharges beginning in 2028, based on the two-year lookback. CMS sets IRMAA premium thresholds annually. The 2026 Roth Conversion Desk Reference from Break Analytics shows all projected 2028 IRMAA tiers alongside 2026 tax brackets for both MFJ and single filers.

Can a Roth conversion be reversed or undone?

No. A Roth conversion cannot be recharacterized. Recharacterization was permitted under prior law but is no longer allowed under current law. Once a conversion is completed, it is permanent. This makes sizing the conversion correctly — before completing the paperwork — essential.

What is the best Roth conversion strategy for a client approaching RMD age?

For clients with large Traditional IRAs approaching the applicable RMD Age under current law, the pre-RMD years represent the strongest conversion opportunity. Converting before distributions are required allows the advisor to control the pace of conversion, stay within specific tax brackets, and manage IRMAA exposure year by year. Break Analytics models three conversion strategies — Bracket Ride, Conversion Smoothing™, and Custom Conversions — each compared against the not-converting scenario across income tax, IRMAA exposure, Social Security impact, and assets remaining at death.

Roth Conversion Assessment for Financial Advisors | Break Analytics

Break Analytics — Free Roth Conversion Assessment

Three Questions to Find Your Client’s Roth Conversion Opportunity

Tax bracket trajectory, IRMAA exposure, IRA balance and timeline — answer three questions and get an instant read on whether a conversion is worth modeling and what to watch out for.

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The Conversion Readiness Assessment

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You’ll get an instant read on whether a Roth conversion is worth modeling — and what to watch out for.

Where is your client’s tax bracket likely to go in retirement?

How old is your client, and when do they plan to convert?

What best describes your client’s IRA balance and timeline?

Real conversion scenarios

Roth Conversions: The Good, the Bad, and the Ugly

Most advisors know Roth conversions are smart in theory. Here’s what the planning conversation actually looks like when the numbers are on the table.

The Good

Tax-free growth potential

A Roth IRA offers tax-free growth potential and generally tax-free distributions. When your client dies, their beneficiaries — often their children — have no annual RMDs during the 10-year period. Those who qualify for the life expectancy option will take RMDs throughout their term certain time frame. In one case study on a $1.2M Traditional IRA, the difference in what beneficiaries received net of tax was over $1.3M. And that’s before the Inherited Roth IRA had grown for a single day — beneficiaries have time for additional tax-free growth potential before distributions are required.

→ Net difference to beneficiaries: conversion vs. no conversion

The Bad

“Optimized” isn’t always optimal

Many tools can optimize the “best” conversion path — but best for what? A tool might identify that converting $1.2M over two years maximizes the estate, but when the client sees a $120,000 tax bill two years running, the excitement fades fast. Conversions aren’t black and white. A smaller conversion spread over more years may cost significantly less in taxes — and for some clients, that’s the better answer. The optimized path depends on the client’s goals, experience, and comfort level. Show them the full picture and let them make the decisions that work best for them.

→ The best conversion strategy is the one that’s right for your client

The Ugly

IRMAA: the short-term cost of a long-term strategy

Many advisors model the tax impact of a conversion but overlook the Medicare impact. A conversion that increases your client’s MAGI can affect IRMAA surcharges — adding thousands per year in Medicare premiums. Depending on your client’s income picture, it may also affect how much of their Social Security is taxable. The conversion benefit may still outweigh the cost — but knowing the IRMAA impact before you convert is essential to sizing it correctly.

→ Know the IRMAA impact before you size the conversion ↓

The numbers that make this conversation real

The projected IRMAA tiers and 2026 tax brackets — sized for every client scenario. One page.

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Free Advisor Reference Tool

From age 63 forward, every conversion amount counts

Medicare premiums at age 65 are determined by MAGI from two years prior — which will include any converted amounts. From age 63 forward, a conversion that pushes your client’s MAGI over an IRMAA threshold can add thousands per year in Medicare surcharges. The desk reference gives you the projected IRMAA tiers and 2026 tax brackets — everything you need to size each conversion carefully without crossing the next tier.

IRMAA tier	2026 MFJ MAGI	2028 Est. Part B / person / mo	2028 Est. annual cost (MFJ)
Standard	Under $232,000	$215.26/mo	$2,583/yr
1.4× Standard ← first IRMAA threshold	$232,001 – $292,000	$301.36/mo	$3,616/yr
2.0× Standard	$292,001 – $364,000	$430.52/mo	$5,166/yr
2.6× Standard	$364,001 – $436,000	$559.68/mo	$6,716/yr
3.2× Standard	$436,001 – $774,000	$688.83/mo	$8,266/yr
3.4× Standard	Over $774,000	$731.88/mo	$8,783/yr

2028 IRMAA tiers projected at 3% annual inflation from 2026 Medicare published thresholds — for planning purposes only, not tax or legal advice. Full table including 2026 single filer brackets and MFJ tax brackets in the desk reference below.

Get the 2026 Roth Conversion Desk Reference

2026 tax brackets for MFJ and single filers · 2028 projected IRMAA tiers · Key Roth conversion timing considerations · IRMAA threshold callouts · Monthly premium chart by tier. One page. Print it. Keep it on your desk.

You’ll receive the desk reference instantly. 2028 IRMAA tiers projected at 3% annual inflation from 2026 Medicare published thresholds — for planning purposes only, not tax or legal advice. Occasional updates from us. Unsubscribe anytime.

The assessment identified your client’s Roth conversion opportunity.
Break Analytics shows you the numbers.

With Break Analytics you can model exactly what converting $50K, $100K, or the full balance looks like year by year — including IRMAA impact, tax bracket management, and what beneficiaries receive. The illustration is detailed enough to share with your client’s CPA. See it live on a real client scenario in 30 minutes.