"strategic" roth conversion

Forum|Forum|7 months ago
October 22, 2025
1 reply
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Hi, trying to keep my income under ~$60k ($48k min + ~$5k HSA + ~$15k single ) to avoid taxes on capital gains. Seeking an algorithm or some such so I know how much I can convert from my trad IRA to Roth and not trigger cap gains taxes.

Ask the Experts - Navigating - Oct 2025

KusyJ

Employee Tax Expert

Short term capital gains will be taxed as ordinary income.

Long-term capital gains rates can be found in the link: 2025 Long-Term Capital Gains Tax Rates (for filing in 2026)

Add the amount you plan to withdraw from your traditional IRA to your other sources of income (without long-term capital gains) to produce gross income. If you are filing single, subtract the 2025 standard deduction of $15,750 from the amount you calculated to determine your estimated taxable income.

Compare your figure to the table in the link above. This should allow you to estimate an amount you can convert from your traditional IRA to a Roth IRA before you move up into the 15% Long-Term capital gain bracket.

This assumes you have no gains from sales that apply to the collectibles rate.

clw26Author

Level 2

not sure I was clear on this - will break it down into 2 questions:

1. Am I correct that I can have income in the amount of $69,400 (cap gains limit of $48350 + single filer deduction of $15,750 + HSA contribution of $5,300 (am over 55), and by keeping income below the $69,400, I will have 0% capital gains tax, 0% Dividends tax, and 12% income tax?