Roth Conversion Strategy

Michael, age 62, retired this year and has not yet claimed Social Security benefits. His only taxable income for 2026 is $30,000 of interest and dividends. He expects to begin receiving substantial pension income and Social Security benefits at age 67.

Which of the following planning strategies is MOST likely to reduce Michael's lifetime income tax liability?

1. Delay all IRA withdrawals until required minimum distributions begin.
2. Convert a portion of his traditional IRA to a Roth IRA during his relatively low-income years.
3. Begin Social Security immediately to use lower tax brackets.
4. Withdraw funds only from his taxable investment account until age 73.