My father passed away in 2023, resulting in 2023 being the last year of MFJ status for my mom.
In 2024, my mom will file as single. This plus expected rate increases in 2026, means that 2023 is an opportunity to get favorable MFJ tax brackets at pre-2026 tax rates. She is considering cashing out dad's post-RMD IRA balance in 2023, paying MFJ rates, and converting funds into a Roth. This will create a MAGI spike in 2023, for which she would file form SSA-44 citing death of spouse as reason for lower income in years post 2023, thus avoiding spike in her Medicare premiums.
Since the 2023 income spike would be intentional on our part, is it likely SSA will consider death of spouse to be the legitimate reason for lower income in subsequent years? I would hate to see her 2025 Medicare premiums skyrocket over this if it is not going to be acceptable to the SSA.
