Craig Wear explains how higher taxable income triggers Medicare Part B and D premium spikes, sometimes making people skip tax strategies like conversions. The increase is steep but temporary, returning to minimums after a few years. The government hasn't yet announced the updated income thresholds that determine these premiums.
That taxable income is likely going to cause your Medicare Part B and D premiums to just explode. And because they're going to explode, a lot of people get gun shy and they pull back from doing conversions at their optimal tax bracket because they see what's about to happen to their Medicare Part B and B premiums. And it is significant, but it's only significant for a short period of time. Then it goes right back down to the minimums. I think you're going to. I think we're going to hear, you know, the government has already come out and said what the inflation rate is going to be for Social Security benefits, but they haven't come out and told us what the new cost is going to be for Medicare Part B and D, which are income based premiums that have the different thresholds.
