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I need to run some spreadsheets to optimize all this but I haven't got around to it yet.

I was about to recommend that.... :-)

I'm sure you know this, but for the benefit of others, remember the RMD comes out first before any conversions. The Roth conversion amount does not count as investment income, but it will increase the MAGI and so may indirectly increase the NIIT if your AGI gets up above $250K for MFJ.

My neighbor recently sold his Queen Anne large house in SW Portland they bought in the 1970s. Even with the %500K exclusion on gain of principal residence, he still has about $600K in capital gains along with about $200K in other income. They got a rude awakening to Fed Income tax, State (OR) income tax, the NIIT and IRMAA (although his increased part B and D premiums won't occur until 2023...I think). That gain on sale of a personal residence is subject to the NIIT. Cute. Really bummed him out.

BruceM
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