Don't Let Medicare IRMAAs Be the Reason You Avoid a Roth Conversion

Don't Let Medicare IRMAAs Be the Reason You Avoid a Roth Conversion Maurie Backman, The Motley Fool Wed, April 22, 2026 at 7:56 AM EDT 5 min read There's a reason Roth conversions are a popular strategy among retirees with large traditional IRA or 401(k) balances. If you keep a substantial amount of money in a traditional retirement account, you'll eventually have to take mandatory withdrawals known as required minimum distributions , or RMDs. Those could drive up your taxes and have other consequences. To avoid RMDs, you'll need to get your savings out of a traditional IRA or 401(k) and into a Roth. You're allowed to do that at your own pace. Will AI create the world's first trillionaire? Our team just released a report on a little-known company, called an "Indispensable Monopoly," providing the critical technology Nvidia and Intel both need. Continue » Image source: Getty Images. While IRAs and 401(k)s come with annual contribution limits, there's no limit as to how much money you can convert to a Roth in a single year, or over a short period of time. But doing a large Roth conversion could have financial consequences. Not only might you end up with a large tax bill, you could wind up on the hook for Medicare IRMAAs. IRMAAs, or income-related monthly adjustment amounts, can increase your Medicare Part B and Part D premiums. IRMAAs are based on modified adjusted gross income (MAGI). The higher yours is, the more likely you are to get stuck p…