The following is provided by the team of accredited advisors with the AMAC Foundation’s Social Security Advisory Service (SSAS).

Timing of Roth Conversions and The Effect on Medicare Premiums

Have questions? Contact our advisors!
Call 888-750-2622, or email ssadvisors@amacfoundation.org

Caught off guard by IRMAA? As Social Security Advisors, we receive phone calls every day from Seniors finding themselves subject to a Medicare “Income Related Monthly Adjustment Amounts,” referred to as IRMAA, affecting the cost of their Medicare Part B and D premiums.

One of the most common reasons is because they did a Roth Conversion after turning 63. It takes Social Security almost 2 years to receive your tax return and this results in the cost of your Medicare premium being determined based on your income from 2 years prior.

One advantage of a Roth Conversion is that it does not affect the tax liability of your Social Security benefits if completed before you start your benefits. The timing of a Roth Conversion is equally as important when it comes to Medicare, or you could find yourself paying a Medicare Part B premium at a higher rate for a full 12 months. If you are married, you and your spouse will pay that same increased premium, and it can be quite substantial.

In 2023

For 2023, the standard Medicare Part B premium is $164.90 if your Modified Adjusted Gross Income (MAGI) is under $97,000 for singles or $194,000 for married couples. Your MAGI include your AGI, 50% of your Social Security Benefits, plus nontaxable interest. If you go over these limits, you could find yourself paying a higher premium, up to $560.50 per month.

There are qualifying events that exempt you from having to pay the increased Medicare Part B & Part D premiums. Should you find yourself subject to IRMAA, you should speak with a Social Security Advisor to find out if you qualify for an exception. But a Roth Conversion, even though you receive no money, plus pay taxes, is not a qualifying event to get the higher Medicare premium waived. The good news is the withdrawals will not affect the amount of your Medicare premiums.

Timing is important! Don’t get caught off guard by IRMAA!

How much do you know about AMAC Foundation services?

AMAC Foundation routinely informs and educates America’s seniors through articles posted on their website News & Info page. The Foundation also facilitates and works with other organizations to promote helpful events and resources.

AMAC Foundation has a dedicated team of accredited professionals, providing free information and responses to those who inquire with Social Security Benefits questions. The Social Security Advisory Service (SSAS) team is engaged in staying up to date on current information and training. Information on services can be found at https://amacfoundation.org/services/.

Our accredited team receives an average of 500 inquiries per month! The responses are individualized, based on the topic in question. In addition, the SSAS team publishes articles, blog posts, and audios found on the AMAC Foundation website and the Foundation’s Social Security Report site. Every day these professionals strive to engage with and help America’s current and future seniors stay in-the-know on popular and important Social Security questions and topics!

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