Reply To: My Roth Conversion $20,000 Tax Mistake – Anyway Out? Sorry, Long Post

Home Fairmark Forum Retirement Savings and Benefits My Roth Conversion $20,000 Tax Mistake – Anyway Out? Sorry, Long Post Reply To: My Roth Conversion $20,000 Tax Mistake – Anyway Out? Sorry, Long Post

#3235
Alan S.
Participant

While it is costly in terms of higher current taxes on the conversion, in the long run you might recover all or most of these taxes. Your TIRA balance will be lower by the amount of this conversion plus future gains on the conversion. That will reduce your RMDs every year indefinitely, and could prevent your MAGI from rising high enough to make your Medicare premiums surcharged, etc; The extent of this benefit depends on what your average marginal rates are in retirement compared to the tax rate paid on the taxable portion of this conversion. Rates are also scheduled to rise in 2026, and your conversion came in a year of lower tax rates.