Ask Terry Questions Roth Conversion Calculation to Avoid IRMAA

Roth Conversion Calculation to Avoid IRMAA

By Terry Savage on December 31, 2022 | Taxes & Economy

I plan on converting a portion of my IRA to a Roth over the next several years. It is
difficult to determine the maximum amount I can convert to avoid the IRMAA threshold
though. Since the amount used to determine IRMAA is your MAGI from two years
prior it is difficult if not impossible to determine the maximum I can convert in the
current year since nobody knows what the threshold will be two years from now.
The only safe way I can see to make the calculation is to use the IRMAA threshold
for single filers for 2023 ($97,000) since the 2024 threshold that will be used
in determining IRMAA using your 2022 MAGI will not be available.
Does this make sense or am I missing something?

Terry Says

It makes sense because I have not heard any proposals to index the IRMAA threshold to inflation.

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