IRMAA Penalty
I did one time roth conversion in 2020 tax year. It caused large tax bill that I expected but i was not aware of the increase in part B and D adjustment provisions. My magi will return to well below the threshold in 2021 tax year.
Is this one year penalty avoidable in any way other than the listed disaster or catastrophic items listed? (Which i had none)
Terry Says
I have worse news — the IRMAA penalty lasts not one, but TWO years! They won’t reduce your Part B premium until 2024! That’s one reason I always suggest doing Roth conversions very carefully, to avoid this type of problem. Youll pay significantly higher Part B premiums for two years!
