topic Re: "strategic" roth conversion in Retirement tax questions

"strategic" roth conversion

clw26 — Wed, 22 Oct 2025 18:48:48 GMT

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.

Re: "strategic" roth conversion

KusyJ — Wed, 22 Oct 2025 20:08:12 GMT

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.

Re: "strategic" roth conversion

clw26 — Wed, 22 Oct 2025 20:19:36 GMT

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?

Re: "strategic" roth conversion

user17610862872 — Wed, 22 Oct 2025 20:33:09 GMT

I am learning and trying understand your math:

$48350; subtract single filer deduction of $15,750; subtract HSA contribution of $5,300 = $27,300

$27,300 is your AGI. Is the MAGI what should be used? If so, is your MAGI $48,350?

Re: "strategic" roth conversion

clw26 — Wed, 22 Oct 2025 22:27:54 GMT

Why would you SUBTRACT deductions from what I can earn and stay under the limit???? You are going the wrong way!

Re: "strategic" roth conversion

clw26 — Wed, 22 Oct 2025 22:30:56 GMT

the $48350 income is the 0% capital gains for single filers

so I ADD the additional deductions to get the top end limit of income I can use and still have 0% cap gains, 0% dividends and 12% income tax --- I have no idea why you would subtract

Re: "strategic" roth conversion

user17610862872 — Thu, 23 Oct 2025 02:11:20 GMT

I was confused by your use of the tilde symbol in your original post. I took it as subtraction. My mistake. Might be time for new glasses.

Re: "strategic" roth conversion

clw26 — Thu, 23 Oct 2025 14:42:43 GMT

so sorry! I thought you were one of the experts and was very confused by your question thinking you "should know better" - profuse apologies for not understanding your question and the tone of my response or where you were coming from!