60-year-old retiree plans $310,000 Roth conversion over three years
Updated
Updated · 24/7 Wall St. · May 10
60-year-old retiree plans $310,000 Roth conversion over three years
12 articles · Updated · 24/7 Wall St. · May 10
The single filer, with $1.7m in a traditional 401(k) and $400,000 taxable savings, aims to complete roughly $103,350 annually before age 63.
That timing avoids Medicare IRMAA surcharges, which use a two-year income lookback and can lift Part B premiums from $202.90 to about $689.90 a month.
The strategy also seeks to lock in an average federal tax rate near 17% now rather than face 22%-24% brackets, taxable Social Security and possible future tax rises.
Why would a retiree with $1.7 million willingly pay a six-figure tax bill over the next three years?
Your 401(k) could trigger massive Medicare fees. Is this three-year window the only way to escape?