[MJ]

Please help chime in and let me know if this works. Thank you!

Financially independent couple. Married filing jointly.

One person is not working, one person does part-time work.

Year 2024.

Income : $23000. Put all towards employer 401k max out employee contribution.

Then do Roth IRA conversion from previous solo 401k account (different account).

Can I still convert $29200 (standard deduction) without getting taxed, or could I only convert $6200 with no tax because of the above income?

**edited to specify it’s two different 401k accounts**

[Charlotte]

What other income is there (like interest, dividends, capital gains, 401k distributions)?

[Scott]

Your AGI is $0 if the $23k is to a pre tax IRA and $23k if it is to a Roth.

So, if pre tax 401k you can convert $29k and Roth 401k $6200.

that said it really doesn’t matter you would end up (ignoring other income and earnings in the accounts)

with the same amounts at the end of the year in the pre tax and Roth ie in both cases you’d end up (your #) with $6200 less in the tIRA and $29200 in the Roth.

[Elizabeth]

If you contribute to a pre-tax 401k as an employee through payroll deduction, that amount will not be included in your W-2 Box 1 wages that transfer over to your tax return.

[Bill]

You would owe $0 in tax.
However, it’s almost never the best move to have a $0 tax year in a tax system with progressive brackets.

So hopefully you would be filing up at least the 10% and likely the 12% with other income, capital gains, or more conversions.

[Rick]

You have no taxable job income. You can Roth convert to the mfj standard deduction to incur no federal taxes.

But it may make sense to push to the 10-12% income tax level, if you can pay those taxes from funds outside Roth.

[Author]

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