Ways to reduce MAGI after 12/31?-Medicare bill

[Luvdogs]

DH starts Medicare soon and we just passed the MAGI threshold by 2K so we have to pay about $700 more (Part B and D) as it is based on our 2016 taxes.

Getting ready to do our 2017 taxes and expect our income to be about the same as 2016.

He is an employee so I can increase his 401K for 2018 which won't help until 2020.

We can't do an IRA deduction, right?

Hmm--in checking, it appears I might be able to do a deductible spousal IRA? Is that correct? Again DH works, I don't. We have a rental but it is in my name alone.

I don't think there is anything to reduce our income at this point. Most of our investments are in retirement accounts.

So is there anything we can do now for our 2017 taxes so that next year we might be below that threshold?

Thanks!

 

[SecondCor521]

If you file MFJ and you or your husband have earned income (sounds like your husband does) and you are under the income limits for deductibility, then yes, you can make a "spousal IRA" contribution to your IRA for 2017, which would reduce your 2017 MAGI.

The MAGI income limit for deductibility for 2017 for MFJ and one person is covered under a retirement plan at work appears to be $99K. See https://www.irs.gov/retirement-plan...-you-are-covered-by-a-retirement-plan-at-work.

Your contribution would be limited to the lesser of your earned income or the annual IRA limit, which is $6,500 for people over age 50 and $5,500 for people under 50.

You'd have to make your contribution by the filing deadline, which is around April 15, 2018.