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Early retirement years with low income = low tax rates. Convert traditional IRA to Roth at 10-12% to avoid 22-32% when RMDs start.
10-12%
Early Retirement Tax Rate
Before SS + RMDs
22-32%
After RMDs Start
SS + RMDs push you up
$50-150K
Tax Savings
Over retirement lifetime
$75K/year Roth Conversions — Building Tax-Free Balance
Timing Your Conversions
| Feature | Good Years to Convert | Bad Years to Convert |
|---|---|---|
| Before Social Security starts | Low income — fill cheap brackets | — |
| Before RMDs (age 73) | No forced income yet | — |
| Market crash year | Convert depressed assets cheaply | — |
| High SS + RMD year | — | Already in high bracket |
| Large capital gains year | — | Income already elevated |
Project Your Income
What's your taxable income this year? Pensions, part-time work, interest, dividends.
Find the Bracket Ceiling
12% bracket ends at $47.1K (single) / $94.3K (married). Convert UP to that limit.
Convert in November-December
By then you know actual income. Convert the exact amount to fill the bracket.
Pay Tax from Taxable Account
Don't withhold from the conversion itself. Pay from savings/brokerage.
Repeat Every Low-Income Year
$50K-$100K/year for 5-8 years can shift most of your IRA to Roth.
Market Crash = Convert More
Hidden Costs of Over-Converting
Key Takeaways