Retirees can convert up to $133,000 in gross income at a 12% rate before 2026 brackets reset higher.
Married couples filing jointly can recognize up to $133,000 in gross income at a 12% federal tax rate or lower before the 22% bracket kicks in for 2026. This window exists between retirement and required minimum distributions (RMDs), typically spanning ages 65 to 73.
For tax year 2026, the standard deduction for joint filers is $32,200, with the 10% bracket covering the first $24,800 of taxable income and the 12% bracket extending to $100,800. After deductions, this allows roughly $133,000 in gross income to remain in the 12% bracket.
Financial planners recommend Roth conversions during this period to lock in the lower rate, as future income from RMDs and Social Security may push retirees into higher brackets.