bracket

When two teams are paired, they are placed in opposite halves of the knockout bracket and cannot meet each other until the final.

That means coordinating flows of income, withdrawals, Roth IRA conversions, charitable giving, capital gains, and equity compensation so that your income lands in the optimal tax bracket over time.

Think of it this way: If you’re in the 37% income tax bracket, you will no longer get a tax benefit valued at 37 cents on each gifted dollar.

By taking a large taxable distribution from your IRA, you might also push yourselves into a higher tax bracket.

One challenge with a Roth conversion is the prospect of getting pushed to a higher tax bracket as the money switches over.