Roth conversions in a low-income year: how far up the bracket do you fill?

randy · 6/18/2025

Sold a business, had one strange low-income year, filled to the top of the 24% bracket. My advisor wanted 22%. Five years later I think I should have gone further. How are you modeling this — IRMAA, state tax, or just bracket math?

5 replies

Fill the 12% for sure, then decide about 22% based on what your RMDs look like later. IRMAA is the sneaky one if you are near 63.
FIRE_at_52 · 6/19/2025
Learned about IRMAA the expensive way. Two year lookback. Nobody warns you.
retired_in_2019 · 6/19/2025
just convert it all in one year and rip the bandaid
HODLberto · 6/20/2025
That can push a chunk of it into 32% plus a Medicare surcharge. Spreading it over 4 low income years is usually tens of thousands cheaper. Run the numbers before you rip anything.
TaxGuyTom · 6/20/2025
Ended up doing 3 years to the top of 22%. Thanks all.
randy · 7/30/2025