Large Roth Conversions Often Backfire for Retirees Already on Medicare

Quick Read Roth conversions increase AGI and can trigger higher tax brackets, Medicare IRMAA surcharges, and taxation of up to 85% of Social Security benefits. Medicare IRMAA surcharges use a two-year lookback, so conversions affect premiums two years later. Converting smaller amounts over multiple years reduces total tax cost versus single large conversions crossing multiple thresholds. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from ...