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?
- 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.
- It will have no effect because Roth conversions are not included in the MAGI calculation for Medicare purposes.
- The surcharge will be prorated based on the number of months remaining in the year after the conversion is completed.
- 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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