How does a Roth conversion affect IRMAA?

A Roth conversion increases MAGI in the conversion year. Because IRMAA surcharges are based on MAGI from two years prior, a 2026 conversion can result in elevated IRMAA surcharges in 2028. CMS sets IRMAA premium thresholds annually. Break Analytics models the IRMAA impact year by year so the advisor can show the client exactly when surcharges increase and when they return to baseline - before the conversion is completed.

Can a Roth conversion be reversed?

No. Recharacterization of a Roth conversion is no longer permitted under current law. A Roth conversion cannot be undone once completed. Break Analytics models the multi-year tax impact before the conversion is executed so advisors and clients can make an informed decision with full visibility into the consequences.

What is Conversion Smoothing in Break Analytics?

Conversion Smoothing is a Break Analytics strategy that allows the advisor to control annual conversion amounts across multiple years, modeling the tax impact of spreading conversions rather than completing a single large conversion in one year. Available in the CREST module.

What is the difference between Bracket Ride and Conversion Smoothing?

Bracket Ride fills the client's current tax bracket each year with conversion amounts. Conversion Smoothing allows the advisor to input specific conversion amounts by year, independent of bracket thresholds. Both are available in Break Analytics and modeled individually so the advisor can evaluate each option against the client's specific situation.

Break Analytics — Roth Conversion Planning Software

The Roth Conversion Tool Built Around the Costs Most Models Miss.

Q: How does a Roth conversion affect Social Security benefits?

The amount distributed in a Roth conversion increases MAGI in the conversion year. This can push combined income above the threshold that determines how much of Social Security benefits are subject to federal income tax - up to 85% under current law. Break Analytics models the Social Security impact year by year alongside the full conversion analysis.

Social Security Impact, IRMAA Exposure, and Income Tax — Modeled Year by Year.

Most Roth conversion models calculate income tax on the conversion. Few account for the added Social Security impact triggered in the same year — or the IRMAA surcharges that arrive two years later. Break Analytics models all three, year by year, before your client commits to a strategy.

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IRMAA Impact Modeling
Social Security Impact
Multi-Year Conversion Strategies
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The Costs Most Roth Conversion Models Overlook

A Roth conversion increases taxable income in the year it is completed. That increase can push combined income above the threshold where Social Security benefits become subject to federal income tax — and may move clients into a higher Medicare premium bracket two years later, where IRMAA surcharges can add thousands of dollars per person each year.

Single-scenario models produce a number. Break Analytics produces a multi-year conversion strategy — with annual income tax detail, IRMAA exposure, and Social Security impact that gives you a recommendation you can defend — modeled year by year, before your client commits to a strategy.

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Multi-Year Conversion Modeling

A single-year snapshot misses bracket shifts, income changes, and the compounding effect of conversion timing. Break Analytics models each year independently with MAGI control and client-specific variables.

IRMAA & Social Security

The conversion decision and its Medicare consequences are separated by two years. The Social Security impact occurs in the same year. Break Analytics models both alongside income tax so nothing is left out of the analysis.

One Recommendation You Can Defend

Bracket Ride, Conversion Smoothing™, and Custom Conversions — compare approaches and show clients exactly which strategy produces the best outcome for their situation.

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The Roth Conversion Assessment

Before the first illustration is run, the most important question isn’t how much to convert — it’s why the client wants to convert at all. The answer shapes the entire strategy. The Roth Conversion Assessment is a printable client desk reference — eight statements your client completes before the meeting. Their responses surface the variables that determine whether a conversion makes sense, how much, and at what pace, so the conversation starts in the right place.

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Client-Ready Reports, Quickly

Enter the client data, run the scenario, and produce a client-ready report with transparent assumptions and calculations solid enough to hand directly to their CPA.

Built to Stay Current.

IRC threshold updates and IRMAA bracket adjustments are reflected automatically — no manual maintenance, no outdated assumptions.

The Rules Are Built In.

Every illustration runs within the guardrails of current IRC rules — so regardless of experience level, no one on your team produces an incorrect analysis. Particularly important for Inherited IRA scenarios where rule complexity creates real liability exposure.

What Advisors Do With Break Analytics

Quantify the income tax, IRMAA exposure, and Social Security impact a conversion would generate before a decision is made
Model Roth conversion opportunities based on the client’s actual conversion driver — not just the lowest tax outcome
Identify the conversion amount that avoids bracket creep or an IRMAA threshold in a given year
Prepare illustrations in advance, walk through them in the meeting, and update the analysis in real time as the conversation evolves
Produce client-ready illustrations that support the Roth conversion discussion — whether the recommendation is to convert or not

What Advisors Ask About Roth Conversions

Does a Roth conversion trigger IRMAA?

Yes — and it is the conversion cost most models overlook. IRMAA is based on MAGI from two years prior, so a conversion that pushes income above an IRMAA threshold in 2026 can result in Medicare premium surcharges in 2028. IRMAA surcharges can add thousands of dollars per person each year — a cost that doesn’t appear until two years after the conversion is completed. Break Analytics models the two-year lookback automatically so advisors can identify the conversion amount that stays below an IRMAA threshold.

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How does a Roth conversion affect Social Security benefits?

The amount converted counts toward combined income for the year — determining how much of a client’s Social Security benefits are subject to federal income tax, up to 85% under current law. A conversion that pushes combined income above the threshold in the conversion year can increase that exposure — sometimes significantly — beyond what the income tax on the conversion alone would suggest. Break Analytics models the Social Security impact year by year alongside the income tax on the conversion so the full cost is visible before a decision is made.

What is the best Roth conversion strategy for a client near retirement?

The gap between retirement and the start of RMDs and Social Security can produce lower MAGI — often the most efficient conversion opportunity. The optimal strategy depends on bracket positioning, IRMAA exposure, Social Security timing, and whether outside funds are available to pay the income tax. Break Analytics models three strategies — Bracket Ride, Conversion Smoothing™, and Custom Conversions — and compares the tax outcome of each side by side.

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Should I use Traditional IRA funds or outside funds to pay the income tax on a conversion?

Whether outside funds are available to pay the income tax is one of the most significant variables in the analysis. Every dollar used from the Traditional IRA to cover the income tax reduces the balance available to convert. Break Analytics incorporates whichever source is available into the analysis so the illustration reflects the client’s actual situation.

When does a Roth conversion not make sense?

A conversion is generally less compelling when the client is already in a high bracket with no reduction expected in retirement, IRMAA surcharges offset the long-term advantage, or the time horizon — for both the client and the beneficiaries — is too short to reach the breakeven point. The income tax on the conversion should be payable from outside funds; if the Traditional IRA is the only source, the math changes significantly. Break Analytics models these factors so advisors can make the case for converting — or against it — with equal confidence.

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How is Break Analytics different from other Roth conversion modeling tools?

Many Roth conversion models produce a single estimate based on a point-in-time snapshot. Break Analytics is purpose-built for Roth conversion analysis — modeling income tax, IRMAA exposure, and Social Security impact across multiple years and client-specific variables — with Bracket Ride, Conversion Smoothing™, and Custom Conversions as distinct strategy options to model and evaluate against not converting. Assumptions update automatically, and illustrations adjust in real time as the conversation evolves. The output is a client-ready illustration with transparent assumptions — not just a number.

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