The Tax Brackets Didn’t Expire After All. Does a 67-Year-Old With $1.7 Million Still Need to Rush Roth Conversions?
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Consider a 67-year-old, married, with $1.7 million in a traditional IRA. The urgency to convert to Roth rested on one date: the end of 2025, when the bracket structure was scheduled to return. The One Big Beautiful Bill kept that structure, and the IRS’s 2026 adjustments reflect it instead of a reversion. For joint filers in tax year 2026, the 12% bracket runs to $100,800 of taxable income and the 22% bracket runs to $211,400.
The IRS’s 2027 adjustments, released Nov. 05, 2026, keep the schedule: for joint filers, 12% runs to $104,050 and 22% to $218,250. That takes away the argument about a scheduled rate increase. Four arguments still stand: the years left before RMDs, RMDs pushing into higher brackets and Medicare surcharges, a surviving spouse filing single, and heirs inheriting pre-tax money.
Six Conversion Years Remain Before the First RMD
For someone born in 1959, the applicable age is 73 under 26 U.S.C. § 401(a)(9)(C)(v)(I). The first RMD year is 2032, and the deadline for it is April 1, 2033. Each RMD is the prior Dec. 31 balance divided by the Uniform Lifetime Table divisor, which is 26.5 at age 73.
A conversion counts as income in the year the money leaves the traditional IRA (IRS Publication 17), and it is permanent. Under 26 U.S.C. § 408A(d)(6)(B)(iii), a conversion cannot be recharacterized. The window for 2026 closes Dec. 31, and the broader window, those quiet years between the last paycheck and the first RMD, is the whole subject of our free Roth conversion guide.
Filling the 22% Bracket Cuts the First RMD to $18,597
Table Assumptions: federal tax only (state tax varies); married filing jointly; $1.7 million traditional IRA on Jan. 1, 2026; owner born 1959; conversions at the start of each year from 2026 through 2031; 5% annual growth; conversion tax paid from a taxable account; basic standard deduction only ($32,200 for 2026, $33,200 for 2027); 2026 brackets for 2026 and 2027 brackets from 2027 on; Social Security and other income left out, and each dollar of it would reduce the bracket room shown.
| Step | Convert nothing | Fill 12% | Fill 22% |
|---|---|---|---|
| 2026 conversion | $0 | $133,000 | $243,600 |
| 2026 tax | $0 | $11,600 | $35,932 |
| Conversion each year, 2027 to 2031 | $0 | $137,250 | $251,450 |
| Tax each year, 2027 to 2031 | $0 | $11,974 | $37,098 |
| Total tax, 2026 to 2031 | $0 | $71,470 | $221,422 |
| IRA balance, Dec. 31, 2031 | $2,278,163 | $1,303,617 | $492,824 |
| 2032 RMD | $85,968 | $49,193 | $18,597 |
| Taxable income from RMD, joint | $52,768 (12%) | $15,993 (10%) | $0 |
| Taxable income from RMD, single survivor | $69,368 (22%) | $32,593 (12%) | $1,997 (10%) |
Social Security is not in the table. Benefits stack on top of the RMD, so $85,968 is the lowest taxable income this example hits at 73, and the divisor gets smaller every year after that.
Each Path Trades Tax Now Against Brackets and Premiums Later
- Convert nothing. No tax now, and conversions can still start in any year through 2031. The projected pre-tax balance at the end of 2031 is $2,278,163.
- Fill the 12% bracket. $71,470 over six years, with no dollar taxed above 12%. Conversion income stays below the $218,000 joint IRMAA threshold (2026 figures).
- Fill the 22% bracket. $221,422 over six years. Each year’s conversion lands in the first IRMAA tier: $81.20 a month for Part B plus $14.50 for Part D per person at 2026 rates. That comes to $1,148.40 a year for each enrollee.
The surcharge shows up later. Social Security uses the most recent federal tax return the IRS provides, measuring MAGI as adjusted gross income plus tax-exempt interest. A conversion done this year therefore raises the premium on a later year’s notice.
Survivor Filing Single Pushes the Same RMD Into 22%
Under 2027 figures, a single filer’s standard deduction is $16,600 and the 22% bracket starts above $52,025. For a single filer, the no-conversion RMD hits 22%. On a joint return, the same RMD stays in 12%. Under 2026 figures, the IRMAA threshold for single filers falls to $109,000.
Most non-spouse heirs must empty an inherited account within ten years, and that income is taxed at their rates. A Roth IRA has no RMDs while the owner is alive.
The decision comes down to three rates: the rate on RMDs plus Social Security after 73, the rate during the years one spouse files single, and the heirs’ rate. The 12% fill costs less only if those later rates come in above 12%. The 22% fill needs later rates of 22% or more, plus the surcharge.
For your own return, check this year’s projected taxable income against the 2026 bracket edge. Start from the taxable income figure on your 2025 Form 1040, then add the year-to-date distributions on your IRA custodian’s statement before Dec. 31.
Contact [email protected] for any questions or corrections.
Jake has been been working in financial media for almost 15 years. He focuses on all things personal finance for 24/7 Wall St. with high hopes to educate and entertain. Most recently, Jake spent 12 years working various roles at The Motley Fool. He started copy editing fool.com content, worked on premium and marketing campaigns, and helped launch The Ascent, a personal finance brand.
His work has been featured on platforms like MSN, Yahoo Finance, USA Today, and more. He's written about credit cards, social security, ETFs, savings accounts, and just about anything else you can imagine when thinking about money. Jake love to cook, play golf, and tell people he's never had a cavity. (It's true!)
