Ramsey Solutions says people already retired or within five years of retirement should usually avoid Roth conversions. Here’s why experts disagree and what matters.

Ramsey Solutions argues that people who are already retired or within five years of
retiring should generally skip a Roth conversion, pointing to the so-called
five-year rule as its reasoning. While many investors follow that advice, a
growing number of tax and retirement experts disagree with its conclusion,
saying the decision depends on several personal financial factors.

Here’s why the debate continues and what it could mean for your retirement
planning.

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Why Ramsey Solutions says near-retirees should avoid Roth conversions

Ramsey Solutions says a Roth conversion starts a five-year clock, leaving people who are
already retired or close to retirement with less time to benefit from tax-free
growth. It also believes many near-retirees don’t have enough cash to pay the
upfront tax bill without dipping into money they’ll soon need.

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How a Roth conversion works

A Roth conversion moves money from a traditional IRA or 401(k), funded with
pre-tax dollars, into a Roth IRA. You’ll pay ordinary income tax on the amount
converted in the year you make the move.

In return, future investment growth and qualified withdrawals become completely
tax-free. Roth IRAs also have no required minimum distributions (RMDs) during
the original owner’s lifetime, giving retirees greater flexibility over their
retirement income.

Why financial planners disagree with Ramsey Solutions

Certified Financial Planner Brandon Renfro argues that Ramsey Solutions misapplies the five-year rule. They note the rule primarily
exists to prevent the 10% early-withdrawal penalty, which generally no longer
applies once someone reaches age 59 1/2.

Because of that, many financial planners believe carefully planned Roth
conversions can still benefit near-retirees, particularly when they expect
higher tax rates later in retirement.

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The real cost of following Ramsey Solutions’ advice blindly

Critics argue that if everyone followed Ramsey Solutions’ advice, only about 5% of people
would realistically complete a Roth conversion. That’s because most don’t have
enough cash outside their retirement accounts to pay the upfront tax bill.

For example, converting $50,000 from a $500,000 traditional IRA while in the 22%
tax bracket creates an $11,000 tax bill, an amount many retirees struggle to pay
from liquid savings.

Your future tax rate is the real deciding factor

Converting makes financial sense when you expect future tax rates to be higher
than today’s on the conversion amount.

Retirement author David McKnight argues that today’s historically low tax rates may not last,
noting the U.S. national debt is projected to reach $63 trillion by 2035. If
taxes rise as a result, paying them now could prove cheaper than waiting until
later in retirement.

Partial conversions could reduce the tax impact

A Roth conversion doesn’t have to happen all at once. Many retirees spread
conversions across several years to stay within lower federal tax brackets.

For example, in 2026, taxable income above $105,700 moves a single filer from
the 22% to the 24% bracket. Converting smaller amounts each year could also help
limit Medicare IRMAA surcharges two years later and reduce lifetime taxes.

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RMDs are a major reason conversions stay popular

Traditional retirement accounts generally require RMDs starting at age 73, even
if you don’t need the money. Those mandatory withdrawals increase taxable
income, and failing to take them carries a 25% excise tax, which can drop to
10% if you rectify within two years.

Roth IRAs don’t require RMDs for the original owner, which is why many financial
planners recommend gradual Roth conversions to help reduce future taxable
withdrawals.

The gap years are when conversions are most powerful

Many financial planners consider the years between retirement and the start of
RMDs, typically ages 62 to 72, the best time for Roth conversions because
taxable income is often lower.

A retiree in the 12% tax bracket converting $50,000 pays $6,000 in tax. Waiting
until RMDs push them into the 22% bracket raises the tax bill to $11,000, an
extra $5,000.

The Roth conversion proposal remains personal, not universal

Ramsey Solutions’ advice offers a simple rule of thumb, but Roth conversions are rarely
one-size-fits-all. Income needs, filing status, investment balances, future
RMDs, estate goals, and available cash all affect the outcome.

Two retirees with identical $500,000 traditional IRAs could make opposite
decisions if one expects to stay in the 12% tax bracket while the other
anticipates moving into the 22% bracket later.

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Bottom line

Ramsey Solutions believes people within five years of retirement should generally
avoid Roth conversions, but many financial planners say there’s no universal
answer. The decision ultimately depends on your current and future tax brackets,
whether you have cash available to cover the conversion tax, and how long the
money can stay invested.

Running your numbers with a tax professional may help you avoid wasting money and
ensure a comfortable retirement.

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