I'm considering converting funds from one of my regular IRAs to one of my Roth IRAs by the end of 2023. I'll be in the lowest federal tax bracket for 2023. Not only that, my income this year is so low that I shouldn't owe any federal income tax at all for 2023. I've done a rough calculation and determined this. I'm almost certainly going to be in a higher tax bracket in the coming years, since I plan on fully retiring in about two years and starting to take social security. In the meantime I might purchase an annuity. So I thought that this might be a good time to do a conversion of at least some of my regular IRA money.
I read in an article that if my total taxable income, including the IRA withdrawal, doesn’t exceed my standard deduction, I wouldn’t owe income taxes on the conversion. Is this true? I can't find any more information about it. Please direct me to a reputable source that states this. Also, any advice about how to determine whether a conversion would be a wise move would be appreciated. Thanks for your time.
