Suze Orman’s Roth Five Year Rule Quietly Saves Retirees Thousands in Medicare Premiums and Most People Have Never Started the Clock

Withdrawing $80,000 annually from a traditional IRA can trigger about $2,000 in extra Medicare Part B premiums plus income taxes, while the same amount from a qualified Roth IRA avoids these costs. Roth IRA withdrawals don't count toward the income threshold that triggers Medicare surcharges. Opening a Roth IRA early and doing strategic partial conversions before age 73 can minimize taxes and Medicare surcharges, saving retirees significant money.