18 May Will a Roth IRA withdrawal mean higher Medicare premiums?
Q. 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.
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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