Personal Investments • 2026 Tax tables impact on Roth conversions! Act now?

OK so no hard and firm numbers from IRS yet but it seems like the 2026 Tax table might look approximately like (per the guess at eFile page):
2026 MFJ
15% $20,226 - $83,550
25% $83,551 - $168,625
28% $168,626 - $256,950
(Sorry if your brackets not included, the idea works across all filings and incomes, I think)
versus
2024 MFJ
12% $23,201 - $94,300
22% $94,301 - $201,050
24% $201,051 - $383,900

So assuming this is about where we end up you can see that the Roth conversions after 2025 are going cost not only 3%-4% more but that the hit will start at lower amounts. A long term conversion plan will be impacted, and the higher the rate the more disproportionate the tax impact will be.

So... My questions are
1) Should I "bite the bullet" in 2024/2025 and convert some at 22%, knowing I will have more than 20 years ahead trying to fill the 15% bracket with conversion?
2) Has anyone seen any good modeling of Roth conversions that take the 2026 changes into account? I use New Ret and can see that their post 2026 tax tables are carrying on from the 2025 tables, albeit at the higher Rate 15% vice 12%, the "shrinking brackets" seems almost as big of a problem as the jump in rates, to me at least.

Anyone got thoughts/concerns, or maybe better info?

Statistics: Posted by Atomsplitter — Mon Mar 25, 2024 9:23 am — Replies 6 — Views 435

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