“But the tax rate will be the same later…”
That’s what they said when you mentioned converting your 401(k) to a Roth.
So you paused.
Because on paper… the math seemed sound.
Pay taxes now? Or later at the same rate? What’s the point?
Here’s the thing:
That logic is one-dimensional. And dangerously incomplete.
It assumes the only variable worth considering is your future tax rate.
It completely ignores the ticking time bomb called Required Minimum Distributions (RMDs)—which don’t care about your plans, your lifestyle, or what bracket you “hope” to be in.
They show up anyway. Forced withdrawals. Taxable income. Added Medicare premiums. Extra IRMAA surcharges. Lost deductions.
This isn’t about “tax rate now vs tax rate later.”
It’s about the unseen tax consequences of doing nothing.
If you think not converting saves you money…
Wait until you see what happens when your untouched 401(k) explodes into your taxable income in your 70s and 80s.
That’s when the “math guys” go quiet.
Bottom line: Run the full numbers. Not just a surface-level rate comparison.
And for the love of God...don’t take advice from someone who’s never seen the damage RMDs can do.
