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

The biggest mistake people make when avoiding roth conversions

13 Jul 2024 · 0 min

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Craig Wear, CFP® explains that many people avoid Roth conversions out of fear that their Medicare Part B/Part D premiums will increase. He acknowledges premiums may rise for a short period if someone is or becomes Medicare-eligible, but argues that the temporary added premium cost is small compared with the long-term tax benefits of completing Roth conversions.

One of the biggest excuses that people made for not doing Roth conversions more aggressively is they were concerned that their Medicare premiums were going to go up. Make no mistake, your Medicare premiums will go up for a short period of time if you are Medicare eligible or become at Medicare eligible. The reality, though, is that added amount of premium that you're going to pay for a few years pales in comparison to the tax benefits of getting that conversion done.