How much should I convert to Roth each year in early retirement to keep taxes low?

The common strategy is to convert just enough each year to 'fill up' the lower tax brackets without spilling into higher ones. In early retirement, before Social Security and required minimum distributions begin, your taxable income is often unusually low, so you can convert traditional-IRA dollars at a low marginal rate, sometimes within the 10% or 12% federal bracket. The IRS taxes conversions as ordinary income in the year you do them. Watch interactions: larger conversions raise your MAGI, which can shrink ACA health-insurance subsidies and, later, affect Medicare IRMAA surcharges. Many early retirees thread the needle by converting a moderate amount that balances bracket-filling against keeping income low enough for healthcare subsidies. Because everyone's brackets and goals differ, model conversions each year using the Roth Conversion tool at wealthserene.com/tools/roth-conversion.