Question regarding my first Roth conversion in retirement

[Healthy Lifestyle]

This year I am officially retired at age 67 and learning the rules as I start Roth conversions.

This year I will officially have no income from a working salary.
My question is, if my salary was $100,000 for the year in 2023, can I do a
Roth conversion from my rollover IRA for $100,000 keeping about the same 2023 tax bracket (disregard other income)?

Thanks in advance, as I going through Roth 101 for beginners.

 

[Time2]

For 2023 the top of the 12% tax bracket is $89,450, on top of that is the standard deduction of $27,700. For a total income of $117,150. You would owe $10,300 in taxes leaving $107,150. It will be hard to live on what is left if you Roth Convert $100,000.

 

[Out-to-Lunch]

Do you have a sizeable stash of funds in a regular taxable savings/brokerage account?

 

[GrayHare]

Yes, converting $100,000 from tIRA to Roth will taxwise look very much like $100,000 of job income.

 

[Out-to-Lunch]

Note that this is considered "unearned income." As such, there is no FICA or Medicare tax paid on it. (You paid that when you earned the money initially.)

 

[DrRoy]

Yes, converting $100,000 from tIRA to Roth will taxwise look very much like $100,000 of job income.

+1

 

[Spock]

For 2023 the top of the 12% tax bracket is $89,450, on top of that is the standard deduction of $27,700. For a total income of $117,150. You would owe $10,300 in taxes leaving $107,150. It will be hard to live on what is left if you Roth Convert $100,000.

Since the OP stated they are 67, 65+ or blind can add another $1550 to the standard deduction.

 

[Healthy Lifestyle]

For 2023 the top of the 12% tax bracket is $89,450, on top of that is the standard deduction of $27,700. For a total income of $117,150. You would owe $10,300 in taxes leaving $107,150. It will be hard to live on what is left if you Roth Convert $100,000.

Since my IRA is larger than I would like, I want to do conversions for a few years before taking SSI at age 70.
I know I need to pay attention to my overall income, dividends, interest, small pension, and IRMAA, etc.
Also, thinking of paying the conversion taxes from my brokerage account.

Thank you all for the helpful comments which are much appreciated.

 

[jazz4cash]

I believe you could designate $7500 from aftertax funds as a contribution for 2023 which would help boost your Roth balance.

 

[Rianne]

DH has a consulting business in our home and files a 1099 NEC. The income is $30K+. Can I contribute to my Roth as MFJ from his business? I have no working income.

 

[Healthy Lifestyle]

DH has a consulting business in our home and files a 1099 NEC. The income is $30K+. Can I contribute to my Roth as MFJ from his business? I have no working income.

Investopedia addresses Roth contributions below:

What Is a Spousal IRA?
Typically, individuals need to earn income to contribute to a traditional individual retirement account (IRA) or a Roth IRA. However, if you’re married, you can use a spousal Roth IRA to boost your retirement savings potential—even if only one spouse works for pay.

I had the same thought now that I am retired, as I also wanted to know the IRS rules, which state I can contribute to my Spousal Roth IRA on my DW's earnings.

 

[SecondCor521]

And by the way, it's a "spousal IRA contribution", not a "spousal IRA". If you make a IRA contribution based on eligible compensation from a spouse's job, it can just go into your regular traditional or Roth IRA - no need to open a separate account or anything.

 

[Healthy Lifestyle]

And by the way, it's a "spousal IRA contribution", not a "spousal IRA". If you make a IRA contribution based on eligible compensation from a spouse's job, it can just go into your regular traditional or Roth IRA - no need to open a separate account or anything.

Thanks for making that clear.

 

[pb4uski]

DH has a consulting business in our home and files a 1099 NEC. The income is $30K+. Can I contribute to my Roth as MFJ from his business? I have no working income.

Yes.