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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…
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