I was thinking of doing the maximum amount of conversion that keeps me in the 12% tax bracket for Federal purposes which is more than the $31K you cited (approximately $60K). However, if future required minimum distributions are not taxable up to $31K in KY (assuming the tax law stays the same), I would be eroding my federal tax savings in the future by paying incremental state taxes now. As such, perhaps the best overall tax strategy would be to limit the conversion each year to $31K.
Am I understanding your answer to my original question correctly?
Thanks!
