Post retirement once we were eligible to convert (pre ACA days and we had retiree health insurance at that time), we converted up to the top of the 12% bracket. Once our modest restricted SS benefits kicked in, we still converted or took out for expenses to the top of the 12% bracket as there were still a lot of space after 85% of SS was taxed. Currently have just over 50% of retirement assets in Roths. Still have more in pretax than we did post 2008, but manageable. Now, in the first full year of my age 70 SS benefits, am only converting at most a nominal amount for my spouse to get a state tax credit. Also doing QCDs. Managing taxable income to minimize taxation of SS benefits. Plan is to have about 52% of SS benefits taxed. Will save about $2700 in taxes by not having 85% of SS being taxed if it all stayed in 12% bracket, which it wouldn't for us. A not insignificant amount would bleed over into the 22/40.7% if we converted enough to cause 85% of SS to be taxed.
Statistics: Posted by Carl53 — Wed Feb 28, 2024 6:16 am — Replies 35 — Views 2617