Craig Wear, CFP, warns against stopping Roth conversions to avoid a Medicare income threshold. Higher earners can pay an extra $500 per person per month in Part B premiums at the top bracket, so the math on when to stop converting often doesn't work out.
Mistake number two, stopping doing conversions at a dollar amount that puts you into higher Medicare premiums. So let me explain in case you aren't aware by that when you enroll for Medicare, Medicare premiums Part B and D are income based premiums. And they have thresholds of different brackets established of how much income you can have before you go into pay and hire, Medicare Part B and Medicare Part D. And you can get up to an extra $500 a month for each of you on Medicare Part B premiums at higher income levels. And so logically, people think, well, I don't want to convert more. That's going to put me into that once I'm 65 years old.
