A 72-Year-Old Couple With $900,000 in IRAs Converts Nothing. Their Kids Inherit the Tax Bill Instead.

Quick ReadA couple avoiding Roth conversions at 22 to 24 percent rates shifts a $900,000 tax liability to heirs who face 32 to 35 percent rates during peak earning years. Couples should convert up to the 22% or 24% bracket ceiling annually before RMDs begin at 73, coordinating with a tax advisor to avoid IRMAA surcharges. Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. The 22% bracket runs from $100,801 to $211,400, and the 24% bracket extends to $403,550. A 2.8% Social Security COLA in 2026 also nudges taxable income higher, since more of the benefit becomes taxable as combined income rises.