They Retired Early—This Roth Conversion Could Save Them $70,000

Could one Roth conversion strategy save an early-retired couple as much as $70,000 in future taxes? Tyke and Tina retired early and are now using their lower-income retirement years to make one of their biggest financial decisions yet: what to do with Tyke’s $115,000 traditional IRA before future required minimum distributions begin. In this real retirement case study, Lisa Smith sits down with Tyke and Tina to examine their plan to convert approximately half of the account in 2026 and the remainder in 2027—potentially filling the 12% federal tax bracket while their taxable income is relatively low. You’ll learn: ✅ Why the years immediately after retirement may create a Roth-conversion opportunity ✅ How Tyke and Tina plan to convert a $115,000 traditional IRA ✅ Why they may split the conversion across two tax years ✅ How future required minimum distributions could increase their taxes ✅ Why paying some tax today could potentially avoid a much larger tax bill later ✅ How the Rule of 55 affected Tina’s retirement-account decisions ✅ How Social Security and the senior tax deduction may affect their strategy ✅ Why Lisa estimates this plan could potentially save them $40,000–$70,000 over time This isn’t a hypothetical example. Tyke and Tina share their real retirement numbers, the decisions they’ve already made, and the questions they’re still working through. You can follow them here on their YT channel https://www.youtube.com/@TykeandTinaAdventures The best time for a Roth conversion depends on your income, tax bracket, retirement accounts, Social Security, Medicare premiums, healthcare subsidies, and long-term financial plan. A conversion cannot be reversed, so always review your complete situation with qualified financial and tax professionals. Want to see if the math works for your accounts? Take my free retirement readiness quiz: resources.lisasmith.com/quiz?src=youtube 👍 Like this video if it helped you 🔔 Subscribe to Lisa Smith for practical strategies

Added 22 Aug 2026