Roth Conversion Window: Why 2025–2028 Is the Time to Act

If you’ve been thinking about a Roth conversion, the years 2025 through 2028 may be the most important window you’ll ever get — especially if you have a large IRA or 401(k).

Why? Because the One Big Beautiful Bill Act (OBBBA) created a rare opportunity: low tax brackets are locked in for four more years. On top of that, there’s a new $6,000 senior deduction for individuals 65 and older, which can further reduce your tax burden. Once we hit 2029, tax rates are expected to jump — and your opportunity may be gone.

This isn’t just a tax move. This is about eliminating future Required Minimum Distributions (RMDs), avoiding Medicare premium hikes, and turning your retirement assets into tax-free income for life.

Let’s unpack why now is the time to act, and what smart retirees are doing to turn this into a long-term advantage.

The Problem: RMDs and Their Hidden Costs

Once you reach age 73 or 75 (depending on your birth year), the IRS forces you to start withdrawing from your IRA — whether you need the money or not. That’s called an RMD, and it comes with serious ripple effects.

If you haven’t done any tax planning, you could end up:

• In a higher tax bracket

• Paying taxes on up to 85% of your Social Security

• Triggering IRMAA surcharges on your Medicare premiums

• Losing valuable deductions

• Facing the widow’s penalty (higher tax brackets after your spouse passes)

• Passing on a major tax bill to your heirs

Most people don't realize how big this impact can be until it's too late.

The Solution: Roth Conversions During the 2025–2028 Window

By converting your IRA into a Roth IRA during this 4-year window, you take control of your tax future — while rates are still low.

The benefits?

• No RMDs ever on Roth IRAs

• Tax-free growth and income for the rest of your life

• No IRMAA surcharges driven by RMDs

• A tax-free legacy for your heirs

Case Study: Barbara, Age 67

Barbara has a $1 million IRA. Using my specialized Roth Conversion Blueprint™ software, we map out a plan to convert $250,000 per year over four years — all while:

• Staying in the same tax bracket

• Paying no out-of-pocket tax cost

• Keeping her principal intact

We use a Roth-friendly fixed indexed annuity that allows for internal conversions, where gains inside the annuity help cover the tax cost. That means no huge tax bill in year one — and no hit to her balance.

By age 75, Barbara has:

• No RMDs

• Protected growth with no market losses

• A guaranteed, tax-free income stream

• And a tax-free legacy for her family

And yes — even the growth inside the annuity is tax-free once it’s fully converted to Roth and the 5-year rule is satisfied.

Why Roth-Friendly Annuities Work So Well

Most annuities aren’t built for Roth conversions — but a few carriers offer “Roth-friendly” versions that allow you to:

• Convert gradually over time

• Pay taxes from internal gains, not out-of-pocket

• Lock in guaranteed lifetime income

• Avoid all future taxation on that money

Only a handful of top-rated annuity carriers offer this structure. We use specialized software to pair the right contract with the right strategy for your situation.

Why Now, Not Later

There’s no question that tax rates are likely to increase — and when they do, Roth conversions will become more expensive.

Here’s the timeline:

1. OBBBA gives us a four-year window (2025–2028)

2. After 2028, rates may increase — reducing the benefit of conversions

3. Converting over multiple years lets you stay in a lower bracket

4.  Once you’re over 59½ and 5 years have passed, your Roth becomes a tax-free income machine

Ready to Retire Financially Relaxed?

My goal is to help you eliminate the fear of running out of money, avoid costly mistakes, and retire with confidence and security. When you have safe, predictable income in place, you’re free to actually enjoy retirement — not just worry your way through it.

• Learn more at the Retirement Income School™

• Want to talk? Schedule a Retirement Income Q&A Call — I’d love to support you.

This is your chance to learn what you wish school had taught you — and discover how to keep your money safe and make it last, so you can enjoy retirement!