Roth IRAs
Including tax-free distributions from Roth IRAs and Roth 401(k) plans in a retiree’s income mix can minimize both income taxes and high-income surcharges on Medicare Part B and Part D premiums.
Many advisers are encouraging clients to consider partial Roth IRA conversions over the next few years, at least up to the top of their tax bracket, to take advantage of current low rates before they expire at the end of 2025. Roth IRAs must be held at least five years and at least until age 59½ to take tax-free and penalty-free withdrawals from earnings, but contributions can be withdrawn at any time.
