18 May Will a Roth IRA withdrawal mean higher Medicare premiums?
Photo: pixabay.comQ. I have $88,000 in a Roth IRA. I’m 74 years old and I would like to take all of the $88,000 and use it for something. If I take all that money, how will that affect my adjusted gross income at tax time? I’m concerned it will affect my Medicare premiums.
— Retired
A. We’re glad you asked.
You don’t want to make a move that will affect your tax bill, and your Medicare premiums, without being prepared.
But there’s good news for you.
Your adjusted gross income will not increase as a result of distributions from your Roth IRA, said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.
But, he said, Medicare premiums are increased based on modified adjusted gross income.
“Modified adjusted gross income includes certain non-taxable income, but does not include distributions from Roth IRAs,” he said. “That being the case, your Medicare premiums should not increase as a result of a Roth IRA distribution.”
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This story was originally published on May 18, 2022.
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