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Message: <blockquote data-quote="Ristorapper" data-source="post: 292872" data-attributes="member: 810">Required Minimum Distributions (RMD) went up from age 70 1/2 to age 72 recently- - - Updated - - -But, where is rock bottom??  <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile    :)" loading="lazy" data-shortname=":)" />- - - Updated - - -Roth Conversion: Lets say for example the wife and I made $50,000 after all interests were added and all deductions were taken.  We are in the 12% tax bracket.  The maximum for the 12% tax bracket is lets say $78,000 (I think I am close)?   So in order not to go into the next tax bracket which is 22% i only can make a Roth conversion of $78,000 - $50,000 = $28,000.  Best to make it a little less so as not to get pushed into the 22% tax bracket.   SO now to convert $28,000 (or a bit less) you will pay 12% tax on that $28,000 or $3360.    IF you miss calculate and convert to much and get pushed into the 22% tax bracket you will pay more taxes on the $50,000 and the lets say $29,000 (mistake) conversion you made.    Big mistake.   If you are in the 22% tax bracket the next is only 2% higher at 24% so you could probably convert up to the maximum amount of the 24% tax bracket.   Best to get your tax advisor involved with this conversion if you have one.   One thing about converting Traditional to Roth is it will increase your income for the year thus increasing the tax on your social security (if you are drawing that).  So that conversion will cost you some more TAXes.  Never ending. In the example above where our income is $50k, lets guess only 48% of the Social security benefit is taxed.  If I max out the conversion to put me at the top of the tax bracket 85% of our social security is taxed.  Like I say easier if you have a tax advisor.  AND easier if you are retired in a lot of cases as most of the income is fixed and easy to do the calculations yourself.- - - Updated - - -<a href="https://www.nerdwallet.com/blog/investing/roth-ira-conversion/" target="_blank">https://www.nerdwallet.com/blog/investing/roth-ira-conversion/</a></blockquote>

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