Short YouTube segment by Craig Wear, CFP® explaining how Roth conversions can reduce lifetime Medicare premiums by lowering required minimum distributions (RMDs) and thus avoiding higher IRMAA (Income Related Monthly Adjustment Amount) surcharges; notes that conversions may increase premiums temporarily but save money over a lifetime.
Okay, so my fourth point is that you also need to manage your Medicare premiums. You know, large required minimum distributions are going to likely push you into higher IRMAA premiums for Medicare. So that's an acronym that just is income related monthly adjustment amount, because Medicare Part B and D are income based and they look back every two years and they determine what your premiums are going to be for those based on your income. So when you're reducing your RMDs through Roth conversions, it can actually help you avoid these additional charges later in your life. You're going to pay higher premiums while you're doing the converting, but the math works out so that you pay much less in total Medicare premiums over your lifetime by actually getting the conversions done sooner.
