RMDs

[jwhit46713]

My wife and I, both 66, have received our first Social Security payments last month. We have IRAs with about $3M in securities. Should we wait until we have to take RMDs or convert gradually starting this year to Roth IRAs?

[VincentL12345]

My suggestion is to focus on your tax bracket in determining your withdrawal strategy options. If you can fill up the bracket without going to a higher bracket, it may be practical. I do not know your tax bracket but here is an example:

Tax Brackets and Rates, 2021
22%	$40,526 to $86,375	$81,051 to $172,750
24%	$86,376 to $164,925	$172,751 to $329,850
32%	$164,926 to $209,425	$329,851 to $418,850
35%	$209,426 to $523,600	$418,851 to $628,300

Using the above bracket amounts of $172,751 to $329,850. If your adjusted gross income is $180,000, you can make withdrawals of $149,850 to fill up the bracket. Do not forget to withdraw your standard deduction amount to arrive at your adjusted gross income.