Retirees were converted to Roth IRA with a low tax on 11-year window period

Retirees enjoy a window period of approximately 11 years before the age of 75, allowing for a conversion of Roth IRA at a federal rate of 12 per cent. However, the average amount converted by retirees during the window was zero, mainly because conversion taxes were almost impossible to pay at a rate of 3.9 per cent of individual savings. Financial educator Susie Oman suggested a small-year conversion to ensure that taxes come from brokerage accounts rather than IRA. In 2026, the maximum tax rate for married couples was $100,800 for 12% and $211,400 for 22%. Most households did not make effective use of this tax opportunity for 11 years and may eventually face higher tax rates and compulsory withdrawals。