I Goofed!

[Ian S]

I Goofed! (IRMAA Problem)

I made a mistake in my calculation of how much of a tIRA to convert to a ROTH for last year. It now appears that I will run afoul of the IRMAA rules so was wondering if I had any options at this point to avoid the problem. I know you used to be able to recharacterize conversions but no longer IIRC. Any advice would be appreciated.

 

[RunningBum]

If you want to attract more eyes to the problem I suggest a more descriptive thread title than "I Goofed!". Good thread titles are also a lot more helpful to people who might have the same issue and are looking for answers. Your title gives zero hint what it's about.

Do you have any earnings income that you could make a deductible IRA contribution against? I think you have until 4/15 for that.

 

[pb4uski]

If you did any tIRA withdrawals in the last 60 days (ie; in December 2018) you may be able to reverse the withdrawal by making a rollover contribution.

HSA contribution?

In any event, even if you don't find anything if you're still within level 2 it'll only cost you $150 for 2019 as I understand it... so it isn't that big a goof.

 

[Ian S]

If you did any tIRA withdrawals in the last 60 days (ie; in December 2018) you may be able to reverse the withdrawal by making a rollover contribution.

HSA contribution?

In any event, even if you don't find anything if you're still within level 2 it'll only cost you $150 for 2019 as I understand it... so it isn't that big a goof.

Unfortunately, I had no employment income last year so can't make a tIRA contribution for 2018. And I don't think I can reverse part of the ROTH conversion.

According to the latest info I can find, in 2020, they will use my income tax return for 2018 which is when I slipped into tier 2 as I was filing as Single. If, in 2020, nothing changes from the current IRMAA numbers, then I will pay monthly surcharges of $54.10 on my Part B premium and $12.40 on my Part D premium which adds up to $798 for the year. There's a potential wrinkle however: I'm planning to get married this year and file joint returns for 2019 and beyond. My initial reading of the rules suggests that because I will be married filing jointly in 2019, I may not be subject to the surcharge in 2020:

If your income has gone down due to any of the following situations, and the change makes a difference in the income level we consider, contact us to explain that you have new information and may need a new decision about your income-related monthly adjustment amount:
• You married, divorced, or became widowed;...

 

[GrayHare]

Yes, you found the solution, an IRMAA adjustment due to major life event.

 

[gauss]

Form SSA-44 (Life Changing Event - Social Security) is the place I would start to investigate this.