Future taxes and IRMAA

[Gumby]

Interesting.. The same probably applies to us..Are you considering converting some to Roth?

I have done some Roth conversions, and I have paid the tax from my after tax cash in some years, as well as having it withheld out of the conversion in others (depending on my level of available after tax cash). Currently, our pensions and social security pay for all of our living expenses and modest vacationing. I'm thinking that, going forward, if we want to go on additional fancy first class trips, we will just take an IRA distribution when necessary instead of converting it to a Roth first.

 

[SecondCor521]

Two considerations that haven't been mentioned above, IRMAA is not on taxable income, you have to add back some items. 2 come to mind, 1) any muni income that isn't taxable and 2) If you are drawing SS and only a portion of it is taxed. DW is drawing SS and I have to use the full amount for the IRMAA computation not the 85% that is taxed.

I think this is partially incorrect.

You are correct that you have to add in tax-exempt interest income such as muni bonds.

However, the untaxed portion of SS is not included in IRMAA MAGI.

Source: https://www.ssa.gov/benefits/medicare/medicare-premiums.html

(The untaxed portion of SS is included in other versions of MAGI, but not the IRMAA one. Many people don't realize that there are several different versions of MAGI, depending on the context.)

 

[youbet]

Ask Schwab. IIRC their "Pinnacle" level customers get a specific rep assigned. Balances need to total $1M. So if you have a rep ask him/her. Otherwise you are probably stuck with the general support phone number.

I thought Pinnacle status meant $10M.

 

[lawman]

(The untaxed portion of SS is included in other versions of MAGI, but not the IRMAA one. Many people don't realize that there are several different versions of MAGI, depending on the context.)

Thanks! I learned something today

 

[lawman]

I thought Pinnacle status meant $10M.

Don't know about Pinnacle but I did get the $300.00 fee waived and I am nowhere near $10M