Boldin’s Tax Bracket Limit Roth Conversion Strategy
🔹 Key Objective:
Minimize lifetime taxes paid by keeping conversions within a chosen bracket.
How it works:
You set a ceiling (say, the 24% federal bracket).
Each year, Boldin recommends just enough conversion to “fill up” that bracket without spilling into the next one.
Result: Provides a consistent, predictable conversion pattern, easier to plan for cash flow and Medicare/IRMAA considerations.
Note: This strategy is bracket-constrained, not necessarily optimized for the absolute lowest lifetime taxes.
🔹 How It Differs from the IRMAA Bracket Strategy
Feature | IRMAA Bracket Strategy | Tax Bracket Strategy |
Constraint | Medicare IRMAA income thresholds | Federal income tax brackets |
Focus | Minimize Medicare premium surcharges | Minimize marginal tax spikes |
Conversion Pattern | Fills IRMAA tiers (e.g., just under $246k MAGI) | Fills tax brackets (e.g., just under 24% tax bracket) |
Trade-off | May leave more IRA balance → higher RMDs later | May trigger higher IRMAA costs but reduces future RMDs |
🔹 Which Is Better?
Tax Bracket Strategy → Better if your priority is lifetime tax minimization, even if it means paying some IRMAA surcharges.
IRMAA Bracket Strategy → Better if your priority is keeping Medicare premiums predictable and avoiding “stealth taxes.”
Reality: Many people blend them — filling up a tax bracket only until they bump into the next IRMAA tier.