Roth Conversion Planner for LGBTQ+ Households

Standard Roth conversion calculators miss two issues specific to LGBTQ+ households: domestic partners face the 10-year forced distribution rule on inherited IRAs (no spousal rollover), and single or DP filers hit the Medicare IRMAA surcharge at $109,000 — half the $218,000 MFJ threshold. Both create stronger urgency to convert pre-tax accounts to Roth while you still control the timing. This planner runs your specific numbers for 2026.

Why Roth conversion strategy is different for LGBTQ+ households

The domestic partner 10-year inherited IRA trap

Under the SECURE Act and T.D. 10001 (July 2024), when a domestic partner inherits an IRA, they are a "non-spouse beneficiary" subject to the 10-year forced distribution rule — the entire account must be withdrawn within 10 years of the account owner's death. This creates two compounding problems: (1) large annual distributions push the survivor into higher brackets; (2) those distributions also increase MAGI, potentially triggering IRMAA surcharges at the $109,000 single-filer threshold.

A married surviving spouse, by contrast, can roll the inherited IRA into their own IRA, delay distributions until their own required beginning date (age 73 or 75 under SECURE 2.0), and potentially spread distributions over 20+ years rather than 10. The difference in lifetime federal tax is often $40,000–$120,000 depending on account size.

Converting your pre-tax IRA to Roth now — while you control the income and timing — lets you pay taxes at your current marginal rate (likely 22–24%) rather than forcing your partner to pull large distributions at potentially 24–32% after inheriting. The conversion reduces the pre-tax balance that will eventually be subject to the 10-year rule. This is one of the strongest cases for aggressive Roth conversion among domestic partner households.

The single-filer IRMAA cliff at $109,000

Domestic partners and single LGBTQ+ individuals hit the Medicare IRMAA surcharge at $109,000 of MAGI — half the $218,000 threshold that applies to married filing jointly. A Roth conversion that crosses $109,000 adds $741.60/year in Part B surcharges per person (first IRMAA tier, 2026). Crossing $163,000 adds $1,854/year. The same conversion dollars that are safely below IRMAA for a married same-sex couple filing jointly can trigger surcharges for a domestic partner who files single.

The practical implication: domestic partner filers should model IRMAA before deciding how much to convert. The goal is usually to fill the 22% or 24% bracket without crossing the IRMAA threshold — or, if you're already in an IRMAA tier, to convert aggressively within that tier rather than dipping just over the next threshold.

Married same-sex couples: wider brackets, but widowhood compresses them

Married same-sex couples filing jointly benefit from wider MFJ brackets — the 22% bracket extends to $211,400 in taxable income vs. $106,250 for single filers. That gives more room to convert at lower rates. However, many same-sex married couples are older and may have one spouse in significantly poorer health. When the first spouse dies, the survivor loses MFJ status starting the second year after death (they file as qualifying surviving spouse in year one, then single or HoH). That bracket compression — from MFJ 24% at $403,550 to single 24% at $201,775 — can cause a significant jump in taxes on RMDs and other retirement income. Converting aggressively during the "window years" when both spouses are alive and MAGI is manageable is often the right call for same-sex married couples with meaningful pre-tax balances.

When not to convert

• Your current bracket is higher than expected future brackets. If you expect income to drop significantly at retirement (and you won't face the DP 10-year rule), deferring may be better.
• You need the cash to pay the conversion tax. If you'd have to liquidate investment accounts to cover the tax bill, conversion is often not worthwhile.
• You're close to an IRMAA tier boundary and can't avoid crossing it. It may be better to convert nothing this year than to spike just over a tier threshold.
• You're in the 10% or 12% bracket now but will be too. If your income will remain low in retirement, the tax rate arbitrage is minimal.