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Is there a written formula to manually calculate how much a person can convert from an IRA to an established Roth in 2019 while staying in the current 12 percent tax bracket?

Is there a written formula to manually calculate how much a person can convert from an IRA to an established Roth in 2019 while staying in the current 12 percent tax bracket? I am a single person on Social Security.

Social Security, IRAs, Taxes
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5 weeks ago

Hello,

I wish there is a simple formula for you to plug in, and you get your result.  Having said that, the task is not super difficult either.  Since you’re single and the only current income source is from SSA, you can estimate the Roth conversion amount.  As long as your total income is up to $39, 475 as a single filer, you will remain in the 12% tax bracket. 

Keep in mind that once your income is above $25k but below $34k, 50% of social security benefits are subject to taxation; above $34k, 85% of that income is subject to taxation.  Therefore, you must take the social security income into consideration when you do the calculation for the Roth conversion amount.

If you’re not comfortable, find a financial planner who has tax software to do the estimate.  In a few minute, you would have your answer.  Best!

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