004 - Your Tax Bracket Is Not a Roth Conversion Strategy
“We’re in the twenty-two percent bracket, so we should convert as much as possible.” That sentence sounds precise. It contains a number, a rule, and an action. It is also an incomplete retirement strategy. A tax bracket tells you the federal rate that applies to the next dollar of taxable income, subject to the full calculation. It does not tell you how many dollars to convert, whether the tax should be paid now, or what the converted money would otherwise have done for your family.
A Roth conversion generally moves money from a traditional retirement account into a Roth account. The taxable…
The skinny
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