Roth Conversions Target $66K Surcharge Savings

A retiree with $1.5M in a traditional 401(k) could face tier 3 income-based health surcharges once required distributions begin at 73 later.
Rolling the workplace 401(k) into a traditional IRA, then converting $80K yearly from 64 through 72, moves $720K into Roth IRA overall.
At 73, the smaller traditional IRA projects near $1.6M, with first-year required distributions near $60K instead of ~$88K in the no-conversion scenario.
Net surcharge savings project near $66K over 12 yr, alongside lower benefit taxation and smaller taxable distributions in retirement under this plan.
Key execution steps: avoid IRA tax withholding, cap conversions at the 24% bracket, and map income-based premiums 2 yr ahead before converting.