Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 11-28-2022, 08:11 AM   #21
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 20,470
Quote:
Originally Posted by Koolau View Post
If I wanted to "push it" and this year take as much as possible (from my 401(k)) without paying premium IRMAA surcharge in 2024 (based on MAGI in THIS year - 2022), what would be a fairly safe "bet" for actual MAGI limit in 2022?

IIRC 8% inflation would increase the number to around $209K. IF my math is correct, I'd still not push it that far. Maybe $205K?? Any thoughts on this? Heh, heh, I actually have a reason for asking. Any help appreciated.
I have always found The Finance Buff to be accurate in his predictions. He presents two different scenarios for 2022 income limits (for 2024 coverage) - one assuming 0% inflation between now and next August and one assuming 5% inflation between now and next August. In the first instance, the first IRMAA limit will be $204k for MFJ. In the second, it will be $208k. I would split the difference. https://thefinancebuff.com/medicare-...irmaa-brackets
__________________
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-28-2022, 09:01 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 7,160
Quote:
Originally Posted by Koolau View Post
If I wanted to "push it" and this year take as much as possible (from my 401(k)) without paying premium IRMAA surcharge in 2024 (based on MAGI in THIS year - 2022), what would be a fairly safe "bet" for actual MAGI limit in 2022?

IIRC 8% inflation would increase the number to around $209K. IF my math is correct, I'd still not push it that far. Maybe $205K?? Any thoughts on this? Heh, heh, I actually have a reason for asking. Any help appreciated.
When faced with a similar situation, someone here, I think @pb4uski, recommended thinking about the situation in the following way:

There is some benefit to getting as close to the threshold as possible. In this case, realizing income at a desirable tax bracket. This benefit is probably calculable in some fashion.

There is some drawback to going over the threshold. In this case, the next IRMAA surcharge. This cost is also calculable in some fashion.

When deciding how close to get, looking at the magnitude of these costs and benefits (and perhaps whether the limit is "cliffy", as IRMAA is) to help make the trade-off decision.

In my similar situation, I was also wanting to get as close as possible. I was looking at a FAFSA cliff, where going over was quite costly and painful. Going under just meant losing out some Roth conversions that I wanted to do, but realistically could be done over future years. Analyzing things in the above way made me realize that I was fine being somewhat under the cliff.

...

Another trick that could work in some circumstances is to plan to go over the limit slightly, and then trim one's AGI with either IRA or HSA contributions in the spring. This, of course, requires being IRA or HSA eligible, and not being too much over, and having available contribution space. This idea won't work in your situation because of the timing - you won't know the 2022->2024 IRMAA limits in the spring of 2023 either.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 11-28-2022, 09:21 AM   #23
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 20,470
A very practical approach.
__________________
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 11-29-2022, 11:15 AM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 12,628
Quote:
Originally Posted by Gumby View Post
I have always found The Finance Buff to be accurate in his predictions. He presents two different scenarios for 2022 income limits (for 2024 coverage) - one assuming 0% inflation between now and next August and one assuming 5% inflation between now and next August. In the first instance, the first IRMAA limit will be $204k for MFJ. In the second, it will be $208k. I would split the difference. https://thefinancebuff.com/medicare-...irmaa-brackets
Many thanks. This is what I was hoping to find. Much aloha.
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 11-29-2022, 11:20 AM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 12,628
Quote:
Originally Posted by SecondCor521 View Post
When faced with a similar situation, someone here, I think @pb4uski, recommended thinking about the situation in the following way:

There is some benefit to getting as close to the threshold as possible. In this case, realizing income at a desirable tax bracket. This benefit is probably calculable in some fashion.

There is some drawback to going over the threshold. In this case, the next IRMAA surcharge. This cost is also calculable in some fashion.

When deciding how close to get, looking at the magnitude of these costs and benefits (and perhaps whether the limit is "cliffy", as IRMAA is) to help make the trade-off decision.

In my similar situation, I was also wanting to get as close as possible. I was looking at a FAFSA cliff, where going over was quite costly and painful. Going under just meant losing out some Roth conversions that I wanted to do, but realistically could be done over future years. Analyzing things in the above way made me realize that I was fine being somewhat under the cliff.

...

Another trick that could work in some circumstances is to plan to go over the limit slightly, and then trim one's AGI with either IRA or HSA contributions in the spring. This, of course, requires being IRA or HSA eligible, and not being too much over, and having available contribution space. This idea won't work in your situation because of the timing - you won't know the 2022->2024 IRMAA limits in the spring of 2023 either.
Thanks so much.

Don't you just hate the "cliffs" and "mine fields" of all the various tax, MC and other gummint rigamarole. Makes me very thankful for this site! Aloha
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 11-30-2022, 01:05 PM   #26
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 3,127
Thanks for the info Gumby.


You might want to update the IRMAA income year for single filers from 2020 to 2021?
Hermit is offline   Reply With Quote
Old 11-30-2022, 01:50 PM   #27
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 20,470
Quote:
Originally Posted by Hermit View Post
Thanks for the info Gumby.


You might want to update the IRMAA income year for single filers from 2020 to 2021?
Done. Thanks for catching that.
__________________
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 12-07-2022, 09:02 AM   #28
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 20,470
I added info for minimum income to get an ACA subsidy. Note the Medicaid expansion was recently on the ballot in certain states and the map could change.
__________________
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 12-07-2022, 01:53 PM   #29
Recycles dryer sheets
 
Join Date: Nov 2014
Posts: 265
Thank you for this! A big question,(and yet to research it) I have is can we contribute to our existing IRA to keep our AGI in the sweet spot. Our HC last year was about $300. BCBS raised the plan by $5k for 23'. There was only one other new unknown provider which we chose for 23'. We have to think BCBS deliberately raised our premiums because our income comes from investments
Hyper is offline   Reply With Quote
Old 12-07-2022, 07:00 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 7,160
Quote:
Originally Posted by Hyper View Post
Thank you for this! A big question,(and yet to research it) I have is can we contribute to our existing IRA to keep our AGI in the sweet spot. Our HC last year was about $300. BCBS raised the plan by $5k for 23'. There was only one other new unknown provider which we chose for 23'. We have to think BCBS deliberately raised our premiums because our income comes from investments
If you are eligible to make a deductible traditional IRA contribution, that will reduce your AGI for ACA. Up to the contribution limits, of course.

How would BCBS know where your income came from?
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 01-08-2023, 10:02 AM   #31
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 20,470
I have added the cutoff MAGI for the new electric vehicle tax credits. Thanks to RetMD21 for the suggestion.
__________________
Living an analog life in the Digital Age.
Gumby is offline   Reply With Quote
Old 01-10-2023, 09:03 AM   #32
Thinks s/he gets paid by the post
 
Join Date: Aug 2013
Location: North
Posts: 3,767
For anyone interested I created a thread documenting Important Contribution Limits for 2023 I will link here. Mods, feel free to move this post if its appropriate.
__________________
Time > $$$ ~ 100% equities ~ FIRE @2031
kgtest is offline   Reply With Quote
New FPL published
Old 01-13-2023, 12:09 AM   #33
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 2,674
New FPL published

2023 POVERTY GUIDELINES FOR THE 48 CONTIGUOUS STATES AND THE DISTRICT OF COLUMBIA
1 $14,580
2 $19,720
3 $24,860
4 $30,000
5 $35,140
6 $40,280
7 $45,420
8 $50,560
For families/households with more than 8 persons, add $5,140 for each additional person.
https://aspe.hhs.gov/topics/poverty-...rty-guidelines
jim584672 is offline   Reply With Quote
Old 01-13-2023, 11:37 AM   #34
Recycles dryer sheets
Morgan22's Avatar
 
Join Date: Nov 2015
Posts: 263
Thanks for letting us know. I've been wondering when they would be published so I can plan for 2024 ACA income thresh holds. (I like to plan years in advance. )
Morgan22 is offline   Reply With Quote
Old 01-13-2023, 12:04 PM   #35
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 4,803
The minimum income for ACA subsidies this year is based on 2022 FPL, correct?
That's the number that matters to me.
aaronc879 is offline   Reply With Quote
Old 01-13-2023, 12:09 PM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 10,242
Quote:
Originally Posted by aaronc879 View Post
The minimum income for ACA subsidies this year is based on 2022 FPL, correct?
That's the number that matters to me.
Yes
__________________
TGIM
Dtail is online now   Reply With Quote
Old 01-25-2023, 03:10 PM   #37
Thinks s/he gets paid by the post
gayl's Avatar
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,630
Moved
gayl is offline   Reply With Quote
Old 02-16-2023, 06:43 PM   #38
Thinks s/he gets paid by the post
USGrant1962's Avatar
 
Join Date: Dec 2016
Location: DC area
Posts: 2,171
I noticed that the Additional Medicare Tax threshold of $250K (MFJ) is missing. Basically 0.9% of wages + SE income over $250K. So that level gets the double-whammy of NIIT and Additional Medicare Tax (guess you can't call it AMT because that one is already taken).
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged

"All models are wrong, some are useful." - George Box
There is always a well-known solution to every human problem: neat, plausible, and wrong. - H.L. Mencken
USGrant1962 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 3 (0 members and 3 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The important "trigger" income levels for 2022 Gumby FIRE and Money 42 02-21-2023 09:37 AM
The important "trigger" income levels 2021 Gumby FIRE and Money 50 11-24-2021 06:13 AM
The important "trigger" income levels 2020 Gumby FIRE and Money 84 03-10-2021 03:03 PM
Roth conversion vs subsidy vs RMD income levels bingybear FIRE and Money 10 05-13-2016 05:48 PM
Some Important Questions to Answer Before Asking - Can I Retire? Gumby Early Retirement FAQs 0 01-05-2014 05:55 PM

» Quick Links

 
All times are GMT -6. The time now is 04:18 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.