topic Recharacterization from IRA to Roth in Retirement tax questions

Recharacterization from IRA to Roth

lehnerwm — Tue, 24 Feb 2026 07:58:42 GMT

My wife is 72, and next year (2024) she need to start making withdraws from her IRA. Can she recharacterize $22,000 this year. What are the tax liability. Current we are in the 16% tax bracket.

Re: Recharacterization from IRA to Roth

NCperson — Tue, 28 Nov 2023 20:11:41 GMT

are you asking if you can do a Roth Conversion? if so, yes.

is the tax basis of her IRA zero?

How did you arrive at $22,000?

Where did you get your tax bracket from? the tax brackets are 10, 12%, 22%, 24% am 32% - there is no 16%.

Re: Recharacterization from IRA to Roth

lehnerwm — Tue, 28 Nov 2023 20:24:24 GMT

Thanks for the Quick response!

My wife did not donate to her IRA this past year. The $22,000 is the amount I would like to recharacterize. If I do more than that, my wife and I will be in a high Medicare bracket in 2025. Is there a ceiling on how much can be recharacterized in one year? The 16% is the amount I pay on my federal taxes last year.

Bill

Re: Recharacterization from IRA to Roth

fanfare — Tue, 28 Nov 2023 21:48:29 GMT

based on your second comment you already know the tax consequences. It is ordinary income.

It is a conversion you are looking to do, not a recharacterization.

There is no limit on the amount you can convert in one year.

@lehnerwm

Re: Recharacterization from IRA to Roth

Opus 17 — Wed, 29 Nov 2023 01:54:25 GMT

Income is taxed according to the tax brackets. The first taxable portion of your income is taxed at 10%, then 12%, then 22%. If your overall average is 16%, that probably means that your top marginal tax rate is 22%, and any additional income will be taxed 22%. Don’t forget state income tax.

Also, remember that any required minimum distribution, that you said starts next year, is not eligible for conversion. After you have satisfied the RMD requirement, any additional funds you withdraw are eligible for conversion.

Re: Recharacterization from IRA to Roth

fanfare — Wed, 29 Nov 2023 02:45:47 GMT

"After you have satisfied the RMD requirement, "

little known, misunderstood factoid.

You must take your full RMD before you do anything else.

@lehnerwm

Re: Recharacterization from IRA to Roth

NCperson — Wed, 29 Nov 2023 03:16:08 GMT

@lehnerwm This is a good website that explains IRMAA; you may have more 'wiggle room' than you think due to the inflation adjustments that IRMAA will under go prior to 2025- this website simply explans that

so in summary, it appears from others that you are probaby in the 22% (and maybe 24%) tax bracket, so if you convert $22,000, be prepared to pay 22% of that number in federal tax, plus any state tax.

https://thefinancebuff.com/medicare-irmaa-income-brackets.html