Seniors Can Offset Up to $12,000 in Roth IRA Conversion Taxes Through 2028
Updated
Updated · The Motley Fool · Jun 1
Seniors Can Offset Up to $12,000 in Roth IRA Conversion Taxes Through 2028
3 articles · Updated · The Motley Fool · Jun 1
Summary
$6,000 for singles and $12,000 for married couples in 2026 can largely offset taxes from equivalent Roth IRA conversions, creating a near-term opening for seniors to move money from traditional retirement accounts.
The deduction applies to taxpayers 65 or older with valid Social Security numbers, phasing in fully for modified adjusted gross income up to $75,000 for singles and $150,000 for couples.
Using the deduction to convert a matching amount can keep a tax bill close to prior years while shifting assets into a Roth IRA, where future growth and qualified withdrawals are tax-free.
The break is scheduled to last through the 2028 tax year, making the next few years a limited window for retirees who want to reduce future tax exposure.