MERIT Financial Advisors 4 Reasons You Actually Want an IRA Balance Late in Life If you've read much about retirement planning lately, you've probably heard the push to convert as much as possible from a traditional IRA to a Roth. The promise sounds appealing: no required minimum distributions, fewer tax surprises, and cleaner planning for heirs. For some households, Roth conversions make sense. But a traditional IRA balance late in life is not automatically a planning failure. Used well, it can still be one of the most tax-efficient assets you own. 1. You can give to charity at a 0% tax rate Once you turn 70%, you can send money directly from your IRA to a qualified charity through a Qualified Charitable Distribution, or QCD. In 2026, the limit is $111,000 per person. The benefit is straightforward: the money is excluded from taxable income, and once required minimum distributions begin, a QCD can satisfy part or all of the amount you are required to withdraw. Dollars that were never taxed going in, and grew tax-deferred for years, can leave the IRA completely tax-free when sent directly to charity. If giving is part of your plan, converting those dollars first may mean paying tax unnecessarily. 2. Big medical bills late in life can make IRA withdrawals nearly tax-free Health care is one of the largest unknowns in late retirement. Long-term care assisted living with medical support, or a difficult year of hospital bills can create major costs. There can be a tax benefit inside that bad news. Unreimbursed medical expenses above 7.5% of income may be deductible if you itemize. In a high-expense year, IRA withdrawals may be partly offset by those deductions. By contrast, someone who converted everything earlier may have paid tax at 22%, 24%, or more on money that could have come out at a much lower effective rate. 3. Low tax brackets refill every year. Don't let them go to waste. Every year, retirees get a fresh standard deduction and another pass through the lower tax brackets. Those brackets are a resource, and they expire each December 31 if unused. If the IRA is empty, those low brackets may go unused because Roth withdrawals are already tax-free. A retiree with modest other income may withdraw meaningful amounts from a traditional IRA at low effective rates over many years. Draining the account too quickly can front-load tax that did not need to be paid so soon. 4. Your heirs might be taxed less than you think One common reason for large conversions is concern that heirs will inherit a tax problem. Sometimes true, but it depends on who inherits and their tax situation. The goal is not to eliminate every traditional IRA dollar. The goal is to match assets with the people or organizations that can receive them most efficiently. The bottom line: the goal is efficiency, not zero Roth conversions are valuable, but they are not the finish line. The real objective is paying the lowest reasonable lifetime tax rate across your retirement and your family's future inheritance. For many retirees, the better strategy is balanced: convert some money in lower-income years but intentionally keep a traditional IRA balance for charitable giving, possible medical costs, lower-bracket withdrawals, and estate flexibility. A traditional IRA balance late in life is not unfinished business. Often, it is evidence that the plan is doing what it was designed to do. Thanks for reading! Warmly. Bryce Stacy - Wealth Manager - Merit Financial Advisors 1205 S. Main Suite 325 | Kalispell, MT 406.890.6344 | www.meritfa.com MERIT Financial Advisors 4 Reasons You Actually Want an IRA Balance Late in Life If you've read much about retirement planning lately , you've probably heard the push to convert as much as possible from a traditional IRA to a Roth . The promise sounds appealing : no required minimum distributions , fewer tax surprises , and cleaner planning for heirs . For some households , Roth conversions make sense . But a traditional IRA balance late in life is not automatically a planning failure . Used well , it can still be one of the most tax - efficient assets you own . 1. You can give to charity at a 0 % tax rate Once you turn 70 % , you can send money directly from your IRA to a qualified charity through a Qualified Charitable Distribution , or QCD . In 2026 , the limit is $ 111,000 per person . The benefit is straightforward : the money is excluded from taxable income , and once required minimum distributions begin , a QCD can satisfy part or all of the amount you are required to withdraw . Dollars that were never taxed going in , and grew tax - deferred for years , can leave the IRA completely tax - free when sent directly to charity . If giving is part of your plan , converting those dollars first may mean paying tax unnecessarily . 2. Big medical bills late in life can make IRA withdrawals nearly tax - free Health care is one of the largest unknowns in late retirement . Long - term care assisted living with medical support , or a difficult year of hospital bills can create major costs . There can be a tax benefit inside that bad news . Unreimbursed medical expenses above 7.5 % of income may be deductible if you itemize . In a high - expense year , IRA withdrawals may be partly offset by those deductions . By contrast , someone who converted everything earlier may have paid tax at 22 % , 24 % , or more on money that could have come out at a much lower effective rate . 3. Low tax brackets refill every year . Don't let them go to waste . Every year , retirees get a fresh standard deduction and another pass through the lower tax brackets . Those brackets are a resource , and they expire each December 31 if unused . If the IRA is empty , those low brackets may go unused because Roth withdrawals are already tax - free . A retiree with modest other income may withdraw meaningful amounts from a traditional IRA at low effective rates over many years . Draining the account too quickly can front - load tax that did not need to be paid so soon . 4. Your heirs might be taxed less than you think One common reason for large conversions is concern that heirs will inherit a tax problem . Sometimes true , but it depends on who inherits and their tax situation . The goal is not to eliminate every traditional IRA dollar . The goal is to match assets with the people or organizations that can receive them most efficiently . The bottom line : the goal is efficiency , not zero Roth conversions are valuable , but they are not the finish line . The real objective is paying the lowest reasonable lifetime tax rate across your retirement and your family's future inheritance . For many retirees , the better strategy is balanced : convert some money in lower - income years but intentionally keep a traditional IRA balance for charitable giving , possible medical costs , lower - bracket withdrawals , and estate flexibility . A traditional IRA balance late in life is not unfinished business . Often , it is evidence that the plan is doing what it was designed to do . Thanks for reading ! Warmly . Bryce Stacy - Wealth Manager - Merit Financial Advisors 1205 S. Main Suite 325 | Kalispell , MT 406.890.6344 | www.meritfa.com