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Level 1
posted Aug 6, 2025 9:16:46 AM

IRA to ROTH IRA Conversion

Are all traditional IRAs converted to Roth IRAs taxable for seniors, or are any amounts exempt under the new tax bill?

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1 Best answer
Employee Tax Expert
Aug 6, 2025 9:43:45 AM

The One Big Beautiful Bill did not make any direct changes to Traditional > Roth IRA conversions. However, the bill did include a personal exemption for taxpayers over 65, which starts at 6,000 per person and begins to phase out at $75,000 of income (150,000 for married filing jointly).

This exemption reduces taxable income, which can offset a conversion, or any other taxable income.

 

This blog post has a good summary of the major changes the One Big Beautiful Bill made: Navigating Tax Reform: One Big Beautiful Bill Tax Changes 

1 Replies
Employee Tax Expert
Aug 6, 2025 9:43:45 AM

The One Big Beautiful Bill did not make any direct changes to Traditional > Roth IRA conversions. However, the bill did include a personal exemption for taxpayers over 65, which starts at 6,000 per person and begins to phase out at $75,000 of income (150,000 for married filing jointly).

This exemption reduces taxable income, which can offset a conversion, or any other taxable income.

 

This blog post has a good summary of the major changes the One Big Beautiful Bill made: Navigating Tax Reform: One Big Beautiful Bill Tax Changes