He Will Convert $120,000 to a Roth and Take Another $29,000 From the IRA to Pay the Tax. That Will Push Him Past $205,000 Into Medicare’s Higher Premium Bracket
Converting a traditional IRA to a Roth sounds straightforward until the tax bill has nowhere to go but the IRA itself, and that one decision turns a smart retirement move into a Medicare premium trap. A retiree with $60,000 of other…