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An additional circumstance that (AICPA resources available include should be considered as a part of the
could complicate this tax planning Sarenski, Guide to Social Security Plan- tax planning process. Knowing the
analysis is making a Roth conversion ning (8th ed.), and Sullivan, Guide to factors involved in the calculation
before enrolling in Part B or, if already Retirement & Elder Planning: Health- of the Medicare Part B premium
enrolled, taking a “bath” by doing the care Coverage Planning (6th ed.).) The allows for effective planning, includ-
conversion in a single year. The lat- complexities related to the premium ing understanding the consequences
ter would mean paying larger Part B itself and the two-year lookback make of current tax planning choices on
premiums when the additional income for interesting analyses that really future premiums. ■
is included from that Roth conversion
two years later. This, of course, would
probably result in higher income tax Contributors
rates in the year of the Roth conver-
Nathan Oestreich, CPA (ret. Texas), Ph.D., is a professor emeritus in the Charles W.
sion, not to mention the uncertainty
Lamden School of Accountancy at San Diego State University in San Diego, Calif.;
of future increases to the IRMAA two
Michael S. Keane, CPA, MSA, is a practitioner in San Diego; and John Cooper, CPA,
years in the future.
DBA, is an assistant professor at California State University, Los Angeles. Theodore J.
A key tax planning Sarenski, CPA/PFS, CFP, is a wealth adviser at SageView in Syracuse, N.Y. Sarenski
consideration is a past chair of the AICPA Advanced Personal Financial Planning Conference, a past
chair of the AICPA Personal Financial Planning Executive Committee, and a former
Professionals should be prepared to
member of the Tax Literacy Commission. For more information about this column,
analyze and explain the Medicare Part
contact thetaxadviser@aicpa.org.
B premium both as a needed service
to their clients and a public service.

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