I am 60 years old and my husband is 70 years old. We have both retired and our 2023 AGI is $70K. We have the ability to do Roth conversions, but have a few things to consider:
We have to stay below the Medicare income limit of $206K for couples - which means we can convert about $136K from traditional IRA to Roth IRA. However, I will be without health insurance starting at the beginning of 2026 and will have to be on the affordable care act. I noticed it is also AGI driven. I'm thinking to get the lower health insurance rate, I should not convert until I turn 65, which will be in 2029.
If I convert, my health insurance will be higher per month. If I don't convert, I will be having to take out a larger portion of RMD's when my husband turns 72. The math for the conversion is this: $136K a year for 3 years equals $408K at 15% effective rate is $61,200. Insurance for 36 months at $1,200 a month (guessing) is $43,000.
The math says do the conversion and pay the higher premiums. Is there anything I'm not considering?
