What I am doing is taking Roth conversions to the top of the 12% tax bracket as I think my tax bracket once we are collecting SS and RMDs is likely to be 22% tax bracket. Over the last 7 years I have done almost $400k of conversions and paid, on average, about 8.5% in federal income tax on those conversions, vs 22% later or 28%+ when I deferred that income.
You may want to look at expanding beyond the 10% tax bracket to the top of the 12% tax bracket... get while the getting is good!
I focus on the pro forma incremental tax on the conversion (incremental tax/conversion amount) rather than a specific tax number.
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If something cannot endure laughter.... it cannot endure.
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Retired Jan 2012 at age 56
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