If you convert $100,000 from an IRA to a Roth IRA, how much is added to taxable income?

Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

Avoid Medicare Premium Pitfalls

28 Aug 2024 · 1 min

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0:32

A short YouTube video by Craig Wear, CFP® explaining how Roth IRA conversions can raise taxable income and thereby increase Medicare Part B and D premiums. The speaker warns that converting pre-tax IRA assets to a Roth adds the converted amount to taxable income (example: converting $100,000 adds $100,000 to taxable income), which can make Medicare premiums more expensive.

Questions this video answers

$100,000

Chapters

That's why most people choose not to do Roth conversions, or they do them only up to a particular income threshold because they're afraid that their Medicare Part B and D are going to get expensive. And they it can get expensive, but that that increase in your income happens because you take money from your IRA that's taxable and you convert it to the Roth IRA. And so if you convert $100,000 from your IRA to a Roth IRA, that's an additional $100,000 that goes towards your taxable income.