The Medicare Surcharge Is Scaring Givers Out of Roth Conversions (Retiring at 65 With $3M)

Turning 65 with about $3 million saved, most of it in IRAs? Your Roth conversion plan shouldn't be built around the Medicare surcharge (IRMAA). Give first, with a donor-advised fund, and the conversions get cheap. This one is for the Christian couple retiring at 65 who gives faithfully to their church. If you've already retired, the same idea works on a smaller scale. Before your last paycheck, give the next six years of church giving all at once. Then convert your IRA to Roth for three years, inside the 12% bracket. The Hills, a hypothetical couple, never cross the Medicare line doing it. If you're retired or getting close and giving is part of how you think about money, subscribe. Every Tuesday there's a video made for you. Free tax return review: I'm doing 5 a month. https://www.demlandwealth.com/taxreview IN THIS EPISODE What the Medicare surcharge really costs: $218,000 is the line for a couple this year, and crossing it by a dollar costs about $2,300 Why your first two years of Medicare are priced off your last two paychecks, and the form that can fix it (SSA-44) The six years between 65 and 70½ when QCDs aren't open to you yet The Hills (a hypothetical couple): $210,000 to a donor-advised fund in their last working year, about $11,000 less federal tax that year, and more than half the deduction carried forward Three Roth conversions at 65, 66 and 67: about $470,000 moved for about $50,000 of federal tax, all inside the 12% bracket Why the 12% bracket stopped the conversions, not Medicare The same couple writing checks every year: $0 federal tax at 65, 66 and 67, then about $72,000 a year at 90 instead of $31,000 Five things to do before December if this is your last year of work CHAPTERS 0:00 Turning 65 and giving first 0:51 What the Medicare surcharge really costs 1:32 Medicare looks back two years 2:00 The six years before QCDs 2:46 Hank and Peggy Hill 3:23 Move one: the gift 4:16 Move two: three Roth conversions 5:01 What about Medicare? 5:45 From 68 on, and QCDs at 70½ 6:13 Give-first vs. the conventional plan 7:02 If you're already retired 7:23 Five things to do before December 8:07 2 Corinthians 9:7 WATCH NEXT Retiring at 62 with about $3 million saved:    • Retiring at 62 With About $3 Million Saved...   Never Give From Your Roth:    • Rendering to Caesar What He Never Asked Fo...   Pre-fund 10 years of giving and convert more to Roth:    • 10 Years of Giving You're Doing Anyway Can...   How to Deduct Five Years of Church Giving in One Year (Donor-Advised Fund):    • How to Donate Appreciated Stock to Your Ch...   More episodes: https://www.demlandwealth.com/givmoar SCRIPTURE 2 Corinthians 9:7 (ESV) SOURCES CMS, 2026 Medicare Parts A & B premiums and deductibles (IRMAA tables): https://www.cms.gov/newsroom/fact-she... Social Security, Form SSA-44 (life-changing event): https://www.ssa.gov/forms/ssa-44.pdf IRS Rev. Proc. 2025-32, 2026 tax brackets and standard deduction: https://www.irs.gov/pub/irs-drop/rp-2... IRS Notice 2025-67, 2026 QCD limit: https://www.irs.gov/pub/irs-drop/n-25... Hank and Peggy Hill are a hypothetical example for educational purposes only. Projections come from financial planning software and are not guarantees. This is not tax, legal, or investment advice. Demland Wealth LLC is a state-registered investment advisor in Ohio and Indiana. Scripture quotations are from the ESV® Bible (The Holy Bible, English Standard Version®), copyright © 2001 by Crossway, a publishing ministry of Good News Publishers. Used by permission. All rights reserved. #RothConversion #IRMAA #DonorAdvisedFund #Medicare #ChristianRetirement #GivMoar