The New $6,000 Senior Deduction Starts Shrinking at $75,000 of Income. For a 66-Year-Old Retiree on Social Security, One Roth Conversion Too Many Wipes It Out.
Jeremy Phillips explains in a 247wallst.com article how the new $6,000 senior deduction for people 65 and older, worth up to $6,000 a person through 2028, starts shrinking at $75,000 of income for single filers and is gone at $175,000, so a Roth IRA conversion counts as income and can erase it. Through a hypothetical 66-year-old retiree whose $40,000 conversion costs about $9,320 at a 23.3% effective rate, he argues the true rate on a conversion above the threshold exceeds the quoted bracket, recommending taxpayers convert only up to the threshold and check where they land against the $75,000 single or $150,000 joint line first.
