Retirement Accounts $1M-$2M: Multi-Year Roth Ladder and IRMAA Management

At this level, RMDs become substantial income that can trigger Medicare surcharges. A multi-year Roth conversion strategy, carefully planned to avoid IRMAA thresholds, can save $50K-$150K+ in lifetime taxes by shifting money to tax-free growth before RMDs force you into higher brackets.

RMDs will be substantial. At age 73, required withdrawals on this range run roughly $38,000 to $75,000 per year. Combined with Social Security and any other income, that can push you into the 24% bracket or higher.

A multi-year Roth conversion ladder is the big opportunity. Converting strategically over 5-10 years -- before and during early RMDs -- can save $50,000 to $150,000 or more in lifetime taxes. The idea is to fill up lower brackets with conversions now rather than being forced into higher brackets by RMDs later.

IRMAA surcharges on Medicare become a factor. If modified adjusted gross income exceeds $109,000 (single) or $218,000 (joint), you'll pay higher Medicare Part B and Part D premiums. A poorly timed Roth conversion or capital gain can trigger surcharges for two years.

The tradeoff: The Roth ladder requires discipline and an ongoing CPA relationship. The optimal conversion amount needs recalculating each year based on actual income, changing brackets, and IRMAA thresholds -- it's not a set-it-and-forget-it strategy.