Personal Finance (Not Investing) • Roth conversion up to 25%?

It is totally dependent on what you expect your marginal rates to be in retirement and early retirement if applicable. Nothing in your post gives any clues to that.

Not totally.

Getting future income in a Roth account rather than a taxed account can lead to less Social Security being taxed and lowering the probabilities of having a Medicare surcharge due to the level of income.

Based on the info OP posted I doubt they will ever be in a position that SS is not taxed. It may help with the Medicare surcharge/IRMAA penalty.

My guess is that most Bogleheads will end up paying the maximum SS tax, so conversions may come down to paying a higher income tax marginal rate now vs. paying extra in IRMAA every year later, along with maybe a lower marginal income tax rate in the future. Maybe NIIT would be involved; maybe not. So conversions might result in absorbing a "loss" for a while and maybe catching up - or more - later (dependent on real return, tax policy, lifespan etc.)

Statistics: Posted by tibbitts — Sat Jun 01, 2024 11:05 pm — Replies 6 — Views 666

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