From 24/7 Wall St. · Vilma Rios · · 1m 20s
Tax Savings by Delaying Social Security Until 70
Retirees converting $60,000 to Roth at 12% avoid 22% tax later.
In brief
Retirees converting $60,000 to Roth at 12% avoid 22% tax later. Couples spending $60,000 a year can convert $70,000 to Roth at 12% and never pay 22% on it again. Originally reported by 24/7 Wall St..
Retirees Leave Cheapest Tax Brackets Empty
Most retirees quit at 62, live off savings, and wait until 70 for largest Social Security check.
Tax Brackets for 2026 Joint Filers
For married couples filing joint returns in 2026, 10% applies to income up to $24,800 and 12% to income up to $100,800.
Roth Conversion Saves Tax
A couple spending $60,000 can convert $70,000 to Roth at 12% and save $56,000 over eight years compared to 22% tax later.
Tax Impact at Age 70
At 70, Social Security checks start, but required minimum distributions kick in at 75 for those born in 1960 or later.
Three Traps for Roth Conversion
ACA health coverage, Medicare’s two-year lookback, and paying tax outside the IRA can shrink conversion window.
Who Should Keep Traditional IRA
Couples with small IRAs, heirs in lower tax brackets, or those moving to no-income-tax states should keep traditional IRA.
Roth Conversion Saves Money
Over eight years, converting $560,000 to Roth saves $56,000 compared to 22% tax later on the same dollars.
What to remember
Couples spending $60,000 a year can convert $70,000 to Roth at 12% and never pay 22% on it again.
