IRA/ROTH CONVERSION at age 91
I am 91 and my wife is 89. We live in our mortgage free home. Our gross income i( $80.000)s from social security, IRAs and bank interest. We have $20,000 in “Chicken Money” Our budgeted expense is $70,000 annually. I would like to reduce our RMD by converting some funds from our IRAs to our Roth accounts. What is the maximum I could convert without triggering higher income tax bracket, increased Medicare cost. impact on social security etc? In short is there a magic income number not to exceed?
Thank you once again for sharing your expert advice.
Terry Says
I think that this is the WRONG time to make that decision!!
Here is the chart for the income levels that trigger higher Medicare Part B and D premiums. You are likely to move into a higher bracket if you do a conversion.
https://www.kiplinger.com/retirement/medicare/medicare-premiums-2026-irmaa-brackets-and-surcharges-for-parts-b-and-d
Is your estate plan up to date? Do you have to withdraw more money than you might need to spend? Is this the time to consider making some gifts (you can each gift up to $19,000 a year to anyone) or to make some charitable donations with your money?
Or better yet, just let the extra RMD accumulate in your bank account for emergencies. There are worse situations at your age than having too much money!
