It's mostly too late to make much difference with Roth Conversions. You might still be able to nibble around the edges. Tibbitts mentioned the tools most of us use to calculate things, but there may not be much meat on the bone here, so a few thoughts before you jump into trying to learn them.
Working up the income scale:
If less than 85% of your SS benefits are being taxed, it may not be worth it do any conversions. (If you are close to 85% being taxed and your wife's RMDs will push you into a 22+% tax bracket, then you should look into the tools tibbitts mentioned)
If 85% of your SS benefits are already taxed and AGI is less than $126,350 (start of the LTCG tax phase-in), you could convert to there.
If you are in the 22% bracket, you could convert to the top of the base IRMAA tier, which will be a bit above a MAGI of $212,000.
If you are above the base IRMAA tier, you could convert to the top of your current IRMAA tier. Estimates of IRMAA tiers (they depend on future inflation, so we never really know them until too late) are at the link:
https://thefinancebuff.com/medicare-irm ... ckets.html
If your wife's RMDs will jump you up an entire tax bracket or more than one IRMAA tier, then you need to use of the tools.
Working up the income scale:
If less than 85% of your SS benefits are being taxed, it may not be worth it do any conversions. (If you are close to 85% being taxed and your wife's RMDs will push you into a 22+% tax bracket, then you should look into the tools tibbitts mentioned)
If 85% of your SS benefits are already taxed and AGI is less than $126,350 (start of the LTCG tax phase-in), you could convert to there.
If you are in the 22% bracket, you could convert to the top of the base IRMAA tier, which will be a bit above a MAGI of $212,000.
If you are above the base IRMAA tier, you could convert to the top of your current IRMAA tier. Estimates of IRMAA tiers (they depend on future inflation, so we never really know them until too late) are at the link:
https://thefinancebuff.com/medicare-irm ... ckets.html
If your wife's RMDs will jump you up an entire tax bracket or more than one IRMAA tier, then you need to use of the tools.
Statistics: Posted by Exchme — Tue Mar 19, 2024 9:59 am — Replies 5 — Views 268