IRMAA, Filing Separately, Younger Spouse

[usafmd]

This calendar year is the first year which will be used to calculate Medicare premiums, IRMAA (63 years old). My DW is two years younger than me. We both have IRA's which can be converted into Roths. The majority of our income comes from Roth conversions we have very little earned income anymore.

For this year, I plan to only make her Roth conversion, therefore most of the 2024 income would be attributable to her. The idea then would be we would file "Married Separately," and have her take the majority of the income. In this way, my reported income for IRMAA (2 years hence for Medicare premium calculation purposes) will be much less than filing jointly. Does this make sense? What am I missing?

We don't have any of the "lost" benefits from filing jointly such as EICI, student loans. Thanks in advance!

 

[teej1985]

Wouldn't you be able to convert twice as much for the same tax rate if you filed jointly? How much are you actually saving from avoiding IRMAA? The initial IRMAA surcharge or 2 doesn't seem that bad.

 

[usafmd]

Wouldn't you be able to convert twice as much for the same tax rate if you filed jointly? How much are you actually saving from avoiding IRMAA? The initial IRMAA surcharge or 2 doesn't seem that bad.

True, the 2024 Fed 24% bracket is broad and wide, up to $191,950 for singles, before the jump to 32%. By contrast, the 22% joint limit is $201,050. Your point is good though. It is also partly an algebra problem, barring any blindspots. Thanks!

 

[Sunset]

This is where I take my downloaded software and copy last year's tax return file.

Then alter the values for both situations and see where it comes out tax wise. Then look at the IRMAA levels for each, and massage the values until I got close.