August · The Decision Calendar

The Window

Alex Alston

What the next dollar of conversion actually costs — not what the bracket table says. This computes the real marginal rate including the Social Security effect, capital gains displacement, and the senior deduction phase-out.

01Your year, before any conversion From July's projection

Filing status Age 65+ Social SecurityGross, both spouses Other ordinary incomePension, IRA, interest, work

Long-term gains and qualified dividends Traditional IRA balanceWhat could be converted Under 65 on a marketplace plan? Rate you expect to pay laterYours, a survivor's, or your children's

02Size the conversion

What each additional dollar costs, as the conversion grows

True marginal cost What the bracket table says Your current conversion

03Which ceiling binds first

04Convert, or harvest gains? They compete for the same space

05What this tells you

Carry forward to November

The true marginal rate is measured by computing your full federal tax at your income and again a step higher — which captures the Social Security effect, capital gains displacement, and the senior deduction phase-out without assuming any of them. Federal only; state tax is not included. Conversions cannot be undone. Bring this to the August call.

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