The earlier the better, and much earlier than most people think. The years just before retirement offer some of the best planning opportunities available. That includes lower-bracket Roth conversions, strategic income adjustments, and deliberate structuring of account withdrawals before required distributions begin. Waiting until you are already retired means many of those options are no longer available.

A Roth conversion moves money from a pre-tax retirement account into a Roth account, where it grows tax-free and can be withdrawn tax-free later. The amount you convert is taxable in the year you convert it, so the goal is to do it in years when your income is lower and your tax rate is more favorable. Roth conversion tax planning involves choosing the right timing and amount, and coordinating it with your other income sources so it actually works in your favor.

Required minimum distributions force taxable withdrawals from pre-tax retirement accounts starting at a certain age set by federal rules. If those distributions are large, they can push you into a higher tax bracket, increase the taxable portion of your Social Security, and trigger higher Medicare costs. RMD tax planning done in advance, including reducing pre-tax balances through earlier conversions or strategic withdrawals, can significantly reduce that long-term impact.

Tax efficient retirement planning comes from managing which accounts you draw from, when you draw from them, and how much income you recognize each year. Coordinating when you start Social Security, sequencing withdrawals across account types, managing investment gains carefully, and using Roth assets in high-income years all help reduce your overall tax burden. The key is having a plan that looks beyond the current year, not just the current year.