A short YouTube video excerpt by Craig Wear, CFP® explaining how Roth (or similar) conversions can lower reported income by avoiding RMD-driven income spikes, thereby reducing Medicare IRMAA surcharges on Parts B and D. The speaker cites an example where avoiding RMD-related surcharges reduces a couple's lifetime Medicare premiums by about $200,000 and frames this as an added benefit distinct from tax savings.
So we're going to talk about that. Also the Medicare IRMAA savings. By avoiding the Medicare premium surcharges from all of those RMDs over a long period of time, it's going to reduce their reported income, which reduces their Medicare premiums on Parts B and D by almost for this couple $200,000 over their lifetime. I know that's not a tax savings, but I thought I'd throw it in there, just kind of an extra bonus. Just because you watched the video and understand that there are benefits of getting these conversions done because of that.
