Why Roth IRA Withdrawals Could Push You Into a Higher Tax Bracket

Episode 15 of Roth IRA with Fexingo explores a counterintuitive risk: even though Roth IRA withdrawals are tax-free, they can push you into a higher tax bracket by increasing your adjusted gross income. Lucas and Luna explain how the IRS calculates taxable income, Medicare premiums, and the net investment income tax — all of which depend on your total income, not just your taxable distributions. They walk through a concrete example: a retired couple with $80,000 in Social Security and $30,000 from a Roth IRA. The Roth withdrawal itself isn't taxed, but the $30,000 raises their modified adjusted gross income, potentially triggering higher Medicare Part B premiums and a 3.8% tax on capital gains. The episode also covers a listener question: should you ever delay Roth withdrawals to avoid these side effects? Finally, a quick word on listener support — buy me a coffee dot com slash fexingo keeps the show ad-free and independent. #RothIRA #RetirementPlanning #TaxBracket #MedicareIRMAA #NetInvestmentIncomeTax #AGI #TaxFreeWithdrawals #SocialSecurity #TaxPlanning #Fidelity #Vanguard #IRS #MAGI #CapitalGains #PersonalFinance #Investing #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo