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Level 1
posted Jul 26, 2023 9:50:39 AM

MAGI calculation for Medicare Premiums

If I take money out of my Roth IRA or Roth 401K will that be counted as income for the MAGI calculation for Medicare Premiums?

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3 Replies
Employee Tax Expert
Jul 26, 2023 9:57:25 AM

As money taken out from Roth IRA or Roth 401K was already included in your income when you initially contributed it, it will not be included in MAGI for medicare premiums. But if you have distributions from traditional IRAs that may count as income for your Part B Premium. Please let us know if you have any additional questions. Please give me a thumbs up if i answered your question 🙂

Expert Alumni
Jul 26, 2023 9:57:55 AM

Withdrawals from ROTH will not impact AGI and MAGI. You have already been taxed on your Roth contributions and the gains are not subject to tax.

 

Kelly C, CPA

 

Expert Alumni
Jul 26, 2023 10:11:19 AM

All great answers as provided by prior experts. As an add on, keep the 5 year Roth earnings rule in mind, whereas Roth earnings cannot be withdrawn tax free until 5 years after first being contributed, regardless of age. A good idea would be to call your plan manager to ensure that all distributions meet the 5 year earnings rule. If not, earnings would be taxable and included in MAGI