Do we know what 2026 taxes will be for fed?

[mistymoney]

if not, when will we know?

need to plan, ya know?

[Paul der Krake]

Inflation adjustments are typically released by the IRS in October/November.

This assumes no changes to tax laws.

[mistymoney]

Inflation adjustments are typically released by the IRS in October/November.

This assumes no changes to tax laws.

That is what I was asking about I guess. The tax rate reductions are set to expire for 2026, making the new 22% bracket 25%, so I would want to roth convert up to the 24% limit by end of 2025.

When would we know? Is there a deadline by which they can't change 2026 taxes?

[terran]

I'm trying not to pay too much attention to the news these days, but I haven't seen anything here or on Bogleheads, which I assume I will if anything changes. I'd hold off as long as you can on anything big. If there aren't pretty reliable rumors by mid December then I think it's unlikely that there will be changes and you'll still have time to do your Roth conversions.

[secondcor521]

Inflation adjustments are typically released by the IRS in October/November.

This assumes no changes to tax laws.

That is what I was asking about I guess. The tax rate reductions are set to expire for 2026, making the new 22% bracket 25%, so I would want to roth convert up to the 24% limit by end of 2025.

When would we know? Is there a deadline by which they can't change 2026 taxes?

There is no legal deadline.

There is a constitutional prohibition to ex post facto laws, but my understanding is that only applies to criminal statutes.

In fact, I think during one of the COVID years there was a law passed in the spring which affected the prior year taxes.  It was a beneficial change, but it was a hassle to manage because it was in the middle of filing season.

I expect Congress to pass a tax bill sometime this year, and if they do it will be all over the news and all over sites like this one.  What that tax bill will look like I have no clue.  Personally I think reverting back to the 2016 environment is unlikely.

Tactically speaking, I agree with what a previous poster said - try to wait if you can.  Roth conversions can be done any time during the calendar year, so mid-December is fine for those.

[MDM]

I expect Congress to pass a tax bill sometime this year, and if they do it will be all over the news and all over sites like this one.  What that tax bill will look like I have no clue.  Personally I think reverting back to the 2016 environment is unlikely.

+1

Mistymoney, also your choice on Roth conversions should be based on your marginal tax rate to convert this year compared with your expectation for the marginal rate to withdraw/convert many years from now (e.g., when you will be subject to RMDs, or when your heirs withdraw, etc.).  And yes, there is even more uncertainty about tax law and your personal situation 15-20 years from now than what will be next year, but so it goes.