I think you are confusing things by trying to think of a Roth conversion as "just like MBDR". They are not the same. Mega-back door starts with money that is going to be taxed this year anyway. Roth conversions (generally) start with money that is not going to be taxed this year anyway.
The only similarity is that both get money into Roth IRA. One does not create extra taxes. The other does create extra taxes.
So just think in terms of whether a Roth conversion is a good idea or not a good idea. Usually the 24% bracket is not the best place to do Roth conversions. If your situation is an exception, you have not told us anything to make that obvious. However, if you are darn near sure your tax bracket will be 24% after severance....it might be an exception.
Agree that your tax-deferred balance is large and maybe you will want to do conversions that high to reduce RMDs later, but that evidence has not yet been presented.
The only similarity is that both get money into Roth IRA. One does not create extra taxes. The other does create extra taxes.
So just think in terms of whether a Roth conversion is a good idea or not a good idea. Usually the 24% bracket is not the best place to do Roth conversions. If your situation is an exception, you have not told us anything to make that obvious. However, if you are darn near sure your tax bracket will be 24% after severance....it might be an exception.
Agree that your tax-deferred balance is large and maybe you will want to do conversions that high to reduce RMDs later, but that evidence has not yet been presented.
Statistics: Posted by retiredjg — Fri Oct 10, 2025 6:44 pm — Replies 2 — Views 236