From 24/7 Wall St. · Gerelyn Terzo · · 1m 20s
She Stops Roth Conversions Before Medicare Starts
Retirees converting IRAs to Roth at 63 and 64 face Medicare surcharges two years later.
In brief
Retirees converting IRAs to Roth at 63 and 64 face Medicare surcharges two years later. A retiree who converts part of her traditional IRA to Roth at 63 and 64 may face higher Medicare premiums in 2029 due to IRMAA surcharges. Originally reported by 24/7 Wall St..
She Stops Roth Conversions Before Medicare Starts
A 63-year-old retiree converts part of her traditional IRA to a Roth in 2026, does it again in 2027, then relaxes.
Medicare Does Not Read the Calendar
Medicare reaches back two years and finds both conversions anyway.
IRMAA Surcharge Depends on Income
IRMAA affects roughly 8% of people with Medicare Part B. Single filers with income at or below $109,000 pay the standard $202.90 monthly Part B premium.
Conversions Set Future Premiums
Her 2026 return sets 2028 IRMAA; her 2027 return sets 2029 IRMAA.
Roth Conversions Count as Income
A Roth conversion moves pretax money into a Roth, and the taxable amount generally counts as ordinary income that year.
Two Conversions Can Trigger Two Surcharge Years
A $50,000 conversion raises her MAGI to $120,000, inside the tier that runs from $109,000 to $137,000. That tier adds $81.20 a month to Part B.
The Cliffs Are Immediate
At $109,000 she pays the standard $202.90. At $109,001 she jumps to $284.10, plus the Part D surcharge if she has drug coverage.
The key point
A retiree who converts part of her traditional IRA to Roth at 63 and 64 may face higher Medicare premiums in 2029 due to IRMAA surcharges.
