The Year Her Husband Died, She Converted $300,000 to a Roth. It Was the Last Return She’d Ever File as Married, and the Cheapest Tax Bill of Her Life

A surviving spouse can convert up to $300,000 into a Roth IRA before Dec. 31 using joint tax brackets, which nearly double the single-filer limit. This unique opportunity to pay significantly less in taxes during the year of a spouse's death allows the surviving spouse to roll the deceased partner's IRA into their own name, unlocking Roth conversion rights.

By converting $300,000 in the year of death, a large portion of the future income can be moved out of higher-rate brackets at today's joint tax rates. The final joint return year uses wider MFJ brackets and a larger standard deduction, with the 24% tax band extending to $403,550 of taxable income for a joint return, compared to $201,775 for a single filer.

This tax move effectively halves the tax bill for many retirees, making it the cheapest tax bill of their lives.