Why is a 401k Rollover to a Roth IRA Considered Income for IRMAA?

When a 401k is rolled over to a Roth IRA the transaction is considered income. Yes, you do pay income tax anytime you withdraw from a 401k. However, 100% of a “rollover” goes into the Roth IRA.

If you are on Medicare, this higher income causes your Medicare Premium to potentially skyrocket due to IRMAA (Income-Related Monthly Adjustment Amount). Yet, you personally did not have any additional income in your pocket to pay the higher premium.

You pay income tax anytime money is withdrawn from a 401k, why create an additional retirement expenditure for higher Medicare Premiums?

SOLUTION: Do not consider 401k rollover to a Roth IRA dollars in calculating Medicare Premium.

Because a Roth IRA is paid for with taxed dollars. You only get taxed on the inteerest when you withdraw. I chose not to do this when the issue came up.