Watch a $500K Roth Conversion Save Six Figures, Start to Finish
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Watch a $500K Roth Conversion Save Six Figures, Start to Finish
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A couple both 62, with $1.2 million in a traditional IRA and $850,000 in a brokerage account, get one $500,000 Roth conversion priced out year by year. The same $100,000 runs about 30% at 63, about 11% at 65 through 69, and about 24% at 71, while the federal bracket at 63 and 65 is identical. What the conversion runs into is what sets the price. This episode follows the math from the first $50,000 through what the couple has left after tax at 92.
- Why the first $50,000 converted at 65 costs $1,450 and the second $50,000 that same year costs about $9,900
- The two ceilings that appear on no tax table: the marketplace subsidy cliff at $84,600 and the Medicare surcharge line at $218,000, which sits $28,900 below the top of the 22% bracket
- Why most of the saving lands in the years after one spouse dies, and the five things that break the whole case
Take the free Retirement Income Roadmap (7 questions, about 30 seconds): incomeoverwealth.com/map
Watch this episode on YouTube: https://www.youtube.com/watch?v=IgZvX8hERgw
This episode is educational and focused on strategy and math. Always consult a qualified tax or financial professional before making personal financial decisions.
