Married couples filing jointly can convert traditional IRA funds to a Roth at 12% up to $100,800 in taxable income, sitting above a $32,200 standard deduction.
Unused 12% bracket room expires December 31 and never rolls forward, making the practical conversion deadline several weeks earlier due to custodian backlogs.
Converting raises Social Security taxable income, can trigger Medicare premium surcharges, and may eliminate marketplace health subsidies, so leave a buffer below the bracket ceiling.
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The Internal Revenue Service sets a 12% federal income tax bracket that, for a married couple filing jointly, runs up to $100,800 in taxable income for the current tax year. That single figure anchors a decision most retired couples never make on purpose: how much of a traditional IRA or 401(k) to convert to a Roth before December 31.