topic IRA to Roth Conversion in Retirement tax questions

IRA to Roth Conversion

Woodman228 — Sat, 16 Nov 2019 20:01:15 GMT

I recently retired at 57. I am researching tax situations if I want to convert my IRA to Roth. For Example, income is below 77,000. If I convert $1000 to the Roth what is my Tax Liability for 2019? Thank you.

Re: IRA to Roth Conversion

Anonymous — Sun, 17 Nov 2019 01:04:48 GMT

the $1,000 would increase your taxable income by a like amount assuming you have no basis in any of your IRA's. since we know little about your entire tax situation, you would be best off using TT taxcaster. while it's based mostly on 2018 law, you should get a good idea.

there are no penalties for doing the conversion even though you are under 59 1/2

https://turbotax.intuit.com/tax-tools/calculators/taxcaster

Re: IRA to Roth Conversion

Hal_Al — Sun, 17 Nov 2019 01:24:24 GMT

If your taxable income (including the Roth conversion amount) is under $78,950 (Married Filing Jointly), the conversion will be taxed at 12%. $78.950 is the threshold for the next tax bracket (22%).

Taxable income is Adjusted Gross income minus Standard or itemized deductions.

So, if you have $77,000 of other income, you can convert up $26,350 at the 12% rate ($77,000 - 24,400 = 52,600; 78,950 -52,600 = 26,350)