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What is your constraint on how much to convert? I assume you are filling up one of the tax brackets.


For Roth Conversions, you are constrained by both tax bracket and IRMAA penalties (and as aj points out, there's also a Net Investment Income Tax of 3.8% that kicks in at $200,000 for singles, $250,000 married)

I'd pay special attention to the IRMAA penalties (both Part B & Part D) since they are step functions. You don't want to go $1 over the IRMAA limit that triggers the higher Medicare premium. You may as well top out that IRMAA bracket since you're paying the extra premium anyway.

If we get a big market drop over the next several years, I'll likely increase the size of my Roth Conversions. It would be advantageous to move more traditional IRA money to the Roth account while stock values were lower.

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