Roth conversion saves $300,000 earner couple $145,000 in taxes
A $300,000 earner couple can save $145,000 in taxes over 8 years by converting traditional 401(k) money to Roth.
The couple has a 13-year window to decide what bracket those dollars come out in.
Converting between 65-73, before required minimum distributions, forces income into higher brackets and triggers Medicare premium penalties.
Done right, this couple saves roughly $145,000 in lifetime taxes by executing conversions at 12% and avoiding 24% rates plus IRMAA surcharges.