What Should I do with my ROTH IRA after I Retire?
Jason Stolz CLTC, CRPC
Many retirees reach an important crossroads and ask the same question: What should I do with my Roth IRA after I retire? You worked hard for years to build tax-free savings, and now the goal is to ensure your Roth IRA supports your retirement with strong income, minimal taxes, and long-term protection. Because Roth IRAs offer unique advantages—no required minimum distributions, tax-free withdrawals, and flexible estate benefits—your strategy in retirement looks different compared to traditional IRAs and workplace plans.
At Diversified Insurance Brokers, we help retirees navigate these decisions every day. Some choose to preserve their Roth IRA for tax-free legacy planning. Others convert it into guaranteed lifetime income using annuities. And many blend Roth withdrawals with other income sources to minimize taxes over their retirement horizon.
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See Fixed Annuity Rates | See Bonus Annuity RatesUnderstanding How a Roth IRA Works When You Retire
Before making decisions about what to do with your Roth IRA after you retire, it helps to understand how the account functions in retirement. A Roth IRA offers tax-free growth and tax-free withdrawals if certain conditions are met. Unlike traditional IRAs, you are not forced to take required minimum distributions (RMDs), which gives you far more flexibility in structuring your retirement income.
If you need a refresher on the mechanics of Roth IRAs, you can review our overview: How Does a Roth IRA Work?
Because Roth IRAs remain tax-free and do not require mandatory withdrawals, many retirees view them as strategic tax shelters. This makes them ideal for covering unpredictable expenses, delaying Social Security, funding health costs later in life, or leaving a tax-free inheritance.
Keeping Your Roth IRA After You Retire
One option is simply leaving your Roth IRA invested. If you are comfortable with market fluctuations and have a sufficiently long time horizon, your Roth IRA can continue to grow tax-free for decades. Many retirees who do not need immediate income choose this approach because it allows their money to compound without tax drag.
However, this strategy also exposes your retirement assets to market volatility, which can be concerning—especially if you’re relying on other accounts for income that are more sensitive to downturns. Many retirees use annuities to protect a portion of their Roth IRA against market losses while still retaining growth potential and tax efficiency.
Rolling Your Roth IRA Into an Annuity After Retirement
For many retirees asking, “What should I do with my Roth IRA after I retire?” one of the most effective strategies is to roll part of the Roth IRA into a fixed or indexed annuity. This option preserves the Roth IRA’s tax-free status while adding safety, predictable growth, and guaranteed lifetime income.
Explore the full rollover process here: How to Transfer a Roth IRA to an Annuity.
A Roth-to-annuity rollover offers several advantages:
• Principal protection Your Roth IRA is shielded from market losses in a fixed or indexed annuity.
• Tax-free annuity income If properly structured, your annuity withdrawals can be tax-free because they originate from after-tax Roth contributions.
• Guaranteed returns (fixed annuities) Multi-year guaranteed annuities (MYGAs) let you lock in predictable, safe interest rates.
• Market-linked growth without losses (indexed annuities) Indexed annuities offer competitive growth potential while avoiding downside risk.
• Lifetime income options You can convert part of your Roth IRA into guaranteed income you can never outlive—tax free.
For retirees who want a predictable, stable income source with tax advantages, this strategy can be extremely effective.
Combining Roth IRA Withdrawals With Other Retirement Income
Coordinating your Roth IRA withdrawals with Social Security, pensions, annuities, and traditional IRA distributions can dramatically improve your overall tax picture. Because your Roth IRA provides tax-free income, it can help you avoid moving into higher tax brackets during retirement.
For example, if a year of high expenses requires a larger withdrawal, pulling from a Roth IRA instead of a traditional IRA may help you keep taxes lower and preserve credits, deductions, and Medicare premium tiers.
This strategy is especially valuable for retirees who rely on pretax accounts for essential income and want to keep their taxable income predictable and stable.
When You Should Consider a Guaranteed Income Strategy
Some retirees discover that they feel more secure when part of their Roth IRA produces dependable income. If you are uncomfortable with market volatility or want a “retirement paycheck,” rolling a portion of your Roth IRA into an annuity with an income rider can be an excellent solution.
These strategies help retirees:
• Avoid outliving their savings
• Stabilize income in volatile markets
• Control the timing of withdrawals from other accounts
• Create predictable tax-free income
Using a Roth IRA as a Legacy Tool After Retirement
Roth IRAs are one of the most powerful vehicles for multigenerational wealth. Since withdrawals for heirs are generally tax-free (subject to required distribution rules), many retirees intentionally leave their Roth IRA untouched to maximize estate value. Some also use annuities inside the Roth IRA to ensure a benefit remains for beneficiaries regardless of market conditions.
Lifetime Income Calculator
Curious how much guaranteed income your Roth IRA could generate? Use the calculator below to explore tax-free lifetime income options.
How Diversified Insurance Brokers Helps You Decide What to Do With Your Roth IRA
We specialize in working with retirees looking to protect their assets, reduce risk, and secure dependable income. As a nationwide independent agency, we compare over 75 insurance companies to help you find the safest and most efficient options for your Roth IRA strategy.
Whether you’re looking for guaranteed growth, tax-free income, or legacy maximization, our advisors help you compare annuity structures, evaluate withdrawal strategies, and build a personalized income plan.
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FAQs: What Should I Do With My Roth IRA After I Retire?
Do I have to take RMDs from a Roth IRA?
No. Roth IRAs have no required minimum distributions, giving you significant control over your retirement income strategy.
Can I roll my Roth IRA into an annuity after I retire?
Yes. A Roth IRA can be rolled into a fixed or indexed annuity, allowing tax-free growth and potentially tax-free lifetime income.
Is it smart to use a Roth IRA for guaranteed income?
Many retirees do. Rolling part of a Roth IRA into an annuity can create reliable, tax-free income you cannot outlive.
Should I leave my Roth IRA invested?
Keeping your Roth IRA invested may work if you tolerate market risk, but protecting part of it with an annuity provides stability.
Is a Roth IRA good for estate planning?
Yes. Roth IRAs transfer tax-free to heirs, making them one of the strongest legacy tools available.
How do I compare annuity options for my Roth IRA?
Compare guarantees, carrier strength, income options, and current rates—starting with fixed and bonus annuity rate pages.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
