How Do You Use the Years Between Retirement and RMDs to Reduce Lifetime Taxes?
Last reviewed: July 2026
Pre-RMD tax planning means using the low-income years between when you retire and when required minimum distributions begin at age 73 to deliberately pull income forward into low tax brackets. You convert pre-tax retirement money to Roth, fill up the bottom of your tax brackets on purpose, and shrink the tax-deferred balance that will eventually force large taxable withdrawals. Done well, this window can cut a six-figure amount off your lifetime tax bill.
Key Takeaways
- The pre-RMD window runs from retirement (often age 60-65) until required minimum distributions begin at age 73 under SECURE 2.0.
- Roth conversions during these gap years let you pay tax at today's known rates instead of unknown future rates on a larger forced balance.
- The 2026 standard deduction is $32,200 for married couples filing jointly, which shelters the first slice of any conversion.
- Watch the IRMAA cliffs: a conversion that crosses a Medicare income threshold can spike your Part B and Part D premiums two years later.
- Delaying Social Security to age 70 keeps your taxable income low during conversion years and grows your benefit by 8% per year.
About the Author: Jeff Judge, CFP®, AEP®, ChFC®, CLU® is Managing Partner of Chesapeake Financial Planners in Forest Hill, Maryland. He has been helping families and business owners in Harford County and the Baltimore metro area navigate retirement tax planning since earning his CFP® certification in 2013, by using Chesapeake Financial Planners’ signature process, the R.U.D.D.E.R. method™. Jeff often tells clients that the years right after retirement are the most underused tax opportunity in a financial plan, and the ones people regret skipping the most.
The stretch between your last paycheck and your first required minimum distribution is the quietest your tax return will ever be. No salary. No RMDs yet. Maybe no Social Security if you've delayed it. That quiet is the opportunity. Here's how to use it, step by step.
What Is the Pre-RMD Window and Why Does It Matter?
The pre-RMD window is the span of years between retirement and the year you turn 73, when required minimum distributions kick in under SECURE 2.0. For someone who retires at 62, that's eleven years where you control your taxable income almost entirely.
Most people's income drops sharply in these years. That's not a problem to solve. It's a gift to spend wisely. When your taxable income falls, the bottom tax brackets open up, and you can fill them with income you'd otherwise pay tax on later at a higher rate.
Here's the trap on the other side. A large traditional IRA or 401(k) keeps growing tax-deferred until 73, then RMDs force you to withdraw a rising percentage every year, often pushing you into higher brackets at exactly the moment you've lost most of your deductions. Jeff has watched clients with seven-figure IRAs face RMDs that single-handedly bumped them two brackets and triggered Medicare surcharges. The fix had to happen years earlier, in the window they didn't use.
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How to Use the Gap Years to Cut Lifetime Taxes (Step by Step)
This is a sequence, not a menu. Each step builds on the one before it.
Step 1: Map Your Bracket Headroom Each Year
Start by figuring out how much room you have inside your current bracket before the next rate kicks in. In 2026, the 22% bracket for married couples filing jointly runs up to roughly $211,400 of taxable income, and the 24% bracket extends to about $403,550. Subtract your expected income from the top of the bracket you want to stay in. That difference is your conversion headroom for the year.
Step 2: Convert Traditional Dollars to Roth Up to the Top of a Target Bracket
A Roth conversion moves money from a pre-tax account into a Roth IRA. You pay ordinary income tax on the converted amount this year, and there's no annual limit on how much you convert. The goal is to convert just enough to fill your target bracket without spilling into the next one. The 2026 standard deduction of $32,200 for joint filers shelters the first chunk, so your first dollars of conversion may cost very little.
Step 3: Pay the Conversion Tax From Outside the IRA
Use taxable brokerage cash or savings to pay the tax bill, not the IRA itself. Paying from the IRA shrinks the amount that actually lands in the Roth and can trigger a penalty if you're under 59½. Keeping the full converted amount inside the Roth is what makes the math work.
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Step 4: Stay Below the IRMAA Cliffs
Medicare premiums are income-tested with a two-year lookback. Cross an income threshold and your Part B and Part D premiums jump in tiers. These are cliffs, not ramps: one dollar over a threshold can cost you hundreds in surcharges. Before finalizing any conversion, check it against the current-year IRMAA brackets so you don't accidentally buy a premium hike.
Step 5: Delay Social Security to Keep Conversion Room Open
Every year you delay Social Security past full retirement age adds an 8% delayed retirement credit up to age 70. Delaying does two things at once: it grows a guaranteed, inflation-adjusted benefit, and it keeps your taxable income low during the exact years you want maximum conversion room.
Step 6: Reassess Every Year and Adjust
Your income, the tax brackets, and your goals all shift. A conversion plan built once and ignored will drift. Jeff revisits the conversion target with clients every fall, before year-end, when the year's actual income is finally clear.
This step-by-step discipline mirrors how we work through every plan at Chesapeake using the R.U.D.D.E.R. Method™, Chesapeake Financial Planners' six-step planning process: Review and Recognize, Uncover and Understand, Design and Develop, Discuss and Decide, Execute and Empower, and Reassess and Refine.
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How Much Should You Convert in a Single Year?
Convert enough to fill your target bracket, but not so much that you spill into a higher bracket or trip an IRMAA cliff. For many retirees, the sweet spot is filling the 12%, 22%, or 24% bracket depending on the size of the IRA and the years available. A larger IRA with fewer years left before 73 may justify converting into the 24% bracket; a smaller balance with a long runway may only need the 12% bracket each year.
The right answer is a multi-year projection, not a single-year guess. Spreading conversions across the full window almost always beats one large conversion that spikes a single year's rate. Jeff has seen a client save more by converting steadily for nine years than a neighbor did with two aggressive conversions that pushed both into the top bracket and triggered surcharges.
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Frequently Asked Questions
What is the pre-RMD window in retirement planning?
The pre-RMD window is the period between when you retire, often around age 60 to 65, and when required minimum distributions begin at age 73 under SECURE 2.0. During these years your taxable income typically drops, opening room to convert traditional retirement money to Roth at lower tax rates and shrink future forced withdrawals.
Why do RMDs start at age 73?
Required minimum distributions begin at age 73 because the SECURE 2.0 Act raised the starting age from 72. The IRS requires you to withdraw a minimum amount from traditional IRAs and 401(k) plans each year so that tax-deferred savings are eventually taxed. The age rises to 75 for individuals born in 1960 or later.
Should I do a Roth conversion before RMDs begin?
Converting before RMDs begin often makes sense if you expect to be in the same or a higher tax bracket later. Converting during low-income gap years lets you pay tax now at a known rate and reduce the traditional balance that drives future RMDs. The decision depends on your bracket, your IRA size, and your timeline.
How do Roth conversions affect Medicare premiums?
Roth conversions raise your modified adjusted gross income, which Medicare uses to set Part B and Part D premiums on a two-year lookback. Crossing an IRMAA income threshold triggers a surcharge that applies two years later. Plan conversions to stay below the next IRMAA cliff so you don't unexpectedly increase your Medicare costs.
Does delaying Social Security help with pre-RMD tax planning?
Yes, delaying Social Security to age 70 supports pre-RMD tax planning in two ways. It adds an 8% delayed retirement credit per year, growing your guaranteed benefit, and it keeps your taxable income low during conversion years. Lower income means more room to convert traditional dollars to Roth at favorable rates.
How much can I convert to Roth in one year?
There is no annual limit on Roth conversions. You can convert as much as you want in a single year, but you pay ordinary income tax on the full converted amount. The practical limit is how much you can convert while staying inside a target tax bracket and below the next IRMAA threshold.
If you want to map your own pre-RMD window before another low-income year slips by, our retirement tax planning guide walks through the bracket math and conversion timeline step by step. Download it at chesapeakefp.com.
Want to go deeper? Our Roth Conversion Window walks through this step by step.
Disclosures
The information provided is for educational purposes only and should not be construed as investment advice. Investment strategies should be tailored to individual circumstances, risk tolerance, and goals. Past performance doesn't guarantee future results. Consult with qualified financial professionals regarding your specific situation.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
This information is not intended to be a substitute for specific individualized tax, investment or legal advice. We suggest that you discuss your specific situation with a qualified tax, legal or financial advisor.
Advisors associated with Chesapeake Financial Planners may be either (1) LPL Financial Registered Representatives offering securities through LPL Financial, Member FINRA and SIPC, and investment advisor representatives offering investment advice through Great Valley Advisor Group; or (2) solely investment advisor representatives offering investment advice through Great Valley Advisor Group and not affiliated with LPL Financial. Great Valley Advisor Group, and Chesapeake Financial Planners are separate entities from LPL Financial.
