Taking your numbers as given, before SS and RMDs start the marginal rate picture for your Roth conversions is here:hulburt1 wrote: ↑Fri Jun 18, 2021 3:38 pm I'm 68 single with 1.1m Ira and 220000 Roth. I can easily live at 12%. But once SS kicks in and RMD at 72 I will be at top 22%. I live very nice at 25000 a year. Running all my no. (10000 pension, RMD 40000, SS 26000 and a part time job 10000) My job go's right to state and Fed. tax's. But I do not pay tax on my Ira with draw or what I put in Roth that's tax is covered by my job. Should I stay at 12% or run it up to about $80000 and put more In Roth and Take home more. Thanks
Including a brief phase-out of the earned income credit, converting up to the top of the 12% bracket costs you ~12%.
Beyond that, IRMAA kicks in if you want to convert enough to bring your tIRA balance down (depending on what return rate you assume). You could pay 22% up to the first IRMAA tier, or ~24% if you include all the money within the 22% bracket.
Once the $26K SS benefit kicks in, you'll pay at least 24% on the RMD (assuming a minimum $40K RMD), and more than that on higher withdrawals.
In short, converting now to the top of the 12% bracket seems a "go do". Beyond that it's close to six of one or a half dozen of the other. With a reasonably sharp pencil, you could justify converting now up to (but not including) the second IRMAA tier.
With a very sharp pencil, assuming you have cash on hand to pay the conversion tax, and depending on what you assume about tax drag in a taxable account, you could justify converting even higher amounts.
Or you could justify not converting beyond the top of the 12% bracket. Depends on your assumptions....
See the personal finance toolbox if you don't mind using Excel to replicate the charts above.
While the numbers are specific to hulburt1's question, the analysis strategy is generic and perhaps applicable to this thread's discussion. Up to the admins if they want to leave this here or delete it, as I've copied the post to hulburt1's new thread.