Missing any tax consequences (+/-) with tIRA to Roth

[Montecfo]

I might well do that. Until 2020 we only converted to the top of the 12% bracket because we were also paying state income tax of 6.6%... so our combined state and federal marginal rate was 18.6%. 2021 will be our first full year free of state income taxes and we expect to be in the 22% bracket once SS starts. Beginning in 2021, we may expand Roth conversions deeper into the 22% bracket from current leveling plan, but we need to be careful in that if we do too much in these early years at 22% it would put us below the top of the 12% tax bracket later on... in effect paying 22% now to avoid 12% later, which would be unwise. For example, if from 2021 until I'm 72 I converted to the top of the base IRMAA tier then we will be below the top of the 12% bracket later on.

Add in possible increases in tax rates just from sunset of current lower rates and the implications to the surviving spouse (be it me or her) and my head starts spinning.

It does make sense, particularly with that big jump. Tax rates cut both ways.

 

[Dtail]

It isn't to the top of a particular tax bracket because for me the "sweet spot" that levelizes our effective tax rate is only ~10% into a tax bracket.

Okay then my question is not truly applicable to how you are addressing the strategy for yourself.
Interesting to hear though.

 

[Dtail]

I might well do that. Until 2020 we only converted to the top of the 12% bracket because we were also paying state income tax of 6.6%... so our combined state and federal marginal rate was 18.6%. 2021 will be our first full year free of state income taxes and we expect to be in the 22% bracket once SS starts. Beginning in 2021, we may expand Roth conversions deeper into the 22% bracket from current leveling plan, but we need to be careful in that if we do too much in these early years at 22% it would put us below the top of the 12% tax bracket later on... in effect paying 22% now to avoid 12% later, which would be unwise. For example, if from 2021 until I'm 72 I converted to the top of the base IRMAA tier then we will be below the top of the 12% bracket later on.

Add in possible increases in tax rates just from sunset of current lower rates and the implications to the surviving spouse (be it me or her) and my head starts spinning.

It does make for interesting "what if" mathematical scenarios.
Of course, one not truly knowing future tax rates causes one to use their best guess scenario.

 

[TheWizard]

I have a projection from now until age 90 of projected taxable account interest, my pension, 85% of SS, RMDs and standard deduction to get a taxable income before Roth conversions, tax and effective tax rate (tax/income) for each year. Then I add Roth conversions from now until 71 to levelize my pre-RMD average effective tax rate with my post-RMD average effective tax rate.

I've been doing something similar: I levelize my AGI from year to year from age 63 start of retirement to around age 75.

Effectively, this means doing Roth conversions to get AGI up close to what it will be once SS and RMDs are happening. But I started age 70 SS this year so I'm getting down to the home stretch.

Additionally, since I'm well into Medicare IRMAA, I manage conversions to avoid MAGI going over the next higher IRMAA threshold.

Although I keep track of my AGI, Taxable Income, and Tax paid from year to year, I find that managing my AGI is the easiest way to go...