Roth Conversions and Medicare Costs | Durham News

Roth conversions may seem like a smart move for tax-free growth, but they come with a hidden cost: triggering IRMAA, which can add $1,148 to $6,936 per person monthly in Medicare premiums. Fidelity saw a 41% spike in conversions this year, but beware — the penalty kicks in two years after conversion and applies to each spouse. Unlike traditional IRAs, Roth conversions create taxable income immediately, potentially pushing you over IRMAA thresholds as early as your early sixties. For 2026, IRMAA starts at $109K for singles and $218K for married couples. While Roth conversions offer control over timing, traditional IRAs avoid IRMAA risk entirely — though RMDs and other income sources can still push you over the cliff later in life. Advisors recommend capping annual conversions by whichever is lower: your tax bracket or the next IRMAA tier — because your income, premiums, and RMDs all shift yearly. IRMAA isn’t an afterthought — it’s central to any conversion strategy. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/5e4b81897327418e