hard · Certified Financial Planner General Principles

Varela, a 63-year-old individual, is already enrolled in Medicare Part B. Her 2024 Modified Adjusted Gross Income (MAGI) was $115,000. She is considering a $50,000 Roth conversion in 2026.

How will this conversion affect her 2028 Medicare premiums?

  1. It will push her income into a higher surcharge tier, increasing her monthly Medicare Part B and Part D costs due to the two-year lookback.
  2. It will have no effect because Roth conversions are not included in the MAGI calculation for Medicare purposes.
  3. The surcharge will be prorated based on the number of months remaining in the year after the conversion is completed.
  4. It will push her into the first surcharge tier ($109,000 to $137,000), resulting in a higher monthly premium in 2028. under the facts given in the stem

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