Opus! Thanks for the details and helping us to understand the "5 Year Rule" x 2! Previously we thought that being over 59 1/2 put us in the clear - first Roth was in 1998. Even after checking with our tax professional!
Reading your post filled in the blanks that I was intuiting! Something just wasn't clear, no matter how many times we read the IRS publication 590B.
To add another layer: As newly retired and paying attention to all the brackets that can affect taxation, including the Income Related Adjustment for Medicare payments, I am wondering if a non qualified withdrawal (within the 5 year time from a particular roth conversion (basis) is added to the MAGI from which the IRMAA is derived?
Age: over 65.
in January 2022 cashed out a roth part converted in 2017 (6500.00) and part (another 6500) was converted in 2019. (all was originally a non deductible IRA)
income was under $120.00.
I think I understand how this will work for this year... feel free to break it down however, for confirmation!
We are planning on doing more roth conversions going forward and want to know if we will need to consider money that hasn't been converted for 5 plus years as income AGI MAGI when figuring out how much we want to convert in a year without going into a higher bracket.
Thanks again.
