hard · Certified Financial Planner Risk Management
The Whitaker household, a married couple filing jointly, is planning a 50,000 Roth conversion in 2026. Their 2024 modified adjusted gross income (MAGI) was 217,500.
According to the 2026 current IRS figures, what is the most significant risk of this conversion?
- They will trigger the first tier of Medicare Part B and Part D surcharges for 2026.
- They will be required to pay the Net Investment Income Tax on the full conversion amount.
- They will lose the ability to make a 7,500 IRA contribution for 2026.
- The conversion will be subject to a 10% early withdrawal penalty.
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