A short YouTube clip in which Craig Wear, CFP® advises viewers not to let Medicare Part B and D income-based premium thresholds deter Roth IRA conversions. He argues that the long-term advantages—tax-free growth and withdrawals, avoidance of required minimum distributions (RMDs), and favorable effects for heirs—generally outweigh any temporary increases in Medicare premiums.
In case you aren't aware by the 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 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 and the math proves out that this Medicare issue is the smallest piece of the puzzle of the savings puzzle. So you're you' stopping short because of Medicare when really Medicare isn't the point. You have to just consider the longer term benefits. The higher Medicare premiums are probably a very small price to pay for all the tax free growth that you're going to get by having it in a Roth. The tax free withdrawals that you're going to have for Roth, the avoidance of required minimum distributions that you're going to have in a Roth and for the next generation what happens for them as well.
