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02-12-2021, 08:54 PM
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#121
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Thinks s/he gets paid by the post
Join Date: Jun 2002
Posts: 1,637
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I was working on my 2020 taxes earlier today. I did a Roth conversion in late 2020 and tried to figure out the highest amount I could convert without triggering IRMAA, realizing that at the time I did it I didn’t have my final actual 2020 income numbers. Based on what I computed today, it looks like I’ll squeak by less than $1K in MAGI. A bit too close for comfort.
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friar1610
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02-12-2021, 08:59 PM
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#122
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Oooh - yeah, that’s close!!!
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Retired since summer 1999.
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05-09-2021, 07:00 AM
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#123
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,932
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Well I finally did it.... Late last year I watched my bottom line (income) really close and I adjusted my tIRA withdrawal at the last minute in December to keep me just under the first tier IRMMA (lower) limit. My 2020 tax return has been filed, processed and refund received. No amendments/adjustments required.
Now if "they" just don't lower the IRMMA limits and/or raise the annual RMD's, I think I can stay away from from paying the higher rates ever again.... Never thought I'd be happy about looking forward to lower income levels.
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20's "something" mind, trapped in a 70's "something" body
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05-09-2021, 07:04 AM
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#124
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 2,522
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Quote:
Originally Posted by Car-Guy
Well I finally did it.... Late last year I watched by bottom line (income) really close and I adjusted my tIRA withdrawal at the last minute in December to keep me just under the first tier IRMMA (lower) limit. My 2020 tax return has been filed, processed and refund received. No amendments/adjustments required.
Now if "they" just don't lower the IRMMA limits and/or raise the annual RMD's, I think I can stay away from from paying the higher rates ever again.... Never thought I'd be happy about looking forward to lower income levels.
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Lucky you. Our 2020 income was lower as we took no RMD's in 2020, so our IRMAA will disappear for one year, starting in 2022, but be back in full force in 2023.
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"Luck favors the prepared mind"
Pasteur
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05-09-2021, 08:48 AM
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#125
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Not so for us ha ha, but we did drop down a tier for 2022.
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Retired since summer 1999.
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05-09-2021, 12:08 PM
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#126
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2015
Posts: 5,862
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This was my Dads thoughts, too. "If I'm making the big money, I will gladly pay the taxes!"
He was the happiest tax payer I know.
Thanks for the memory RobbieB. :-)
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Give a Man a fish, he will eat for a day.
Teach a Man to fish, he will eat for a lifetime.
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05-09-2021, 03:59 PM
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#127
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
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Quote:
Originally Posted by pacergal
This was my Dads thoughts, too. "If I'm making the big money, I will gladly pay the taxes!"
He was the happiest tax payer I know.
Thanks for the memory RobbieB. :-)
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Next year we’ll pay Aunt IRMAA big time. We got a last W-2 after exercising the last of options, plus took advantage of the spring market drop to convert a large amount of tIRA to Roth last year. After that we can control our income to stay in the second tier of IRMAA at least until RMDs start. We’ll never avoid IRMAA completely, but even with IRMAA our health care will be much cheaper than preMedicare.
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05-09-2021, 04:24 PM
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#128
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Thinks s/he gets paid by the post
Join Date: Feb 2009
Location: Cville
Posts: 1,604
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Back when I was still working and DW had gone on Medicare we got hit with 2nd tier of IRMAA because of a one year spike in my 8ncome. I filed the form along with first 2 pages of latest taxes to show it was a one year blip and they cut back one level of IRMAA. Worth a try, otherwise it takes 2 years before reduced income is reflected.
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FIRE 31 Aug, 2018 - Always leave every place better than you found it, always give more than expected or Due
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05-10-2021, 05:53 AM
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#129
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 2,522
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Quote:
Originally Posted by RetireBy90
Back when I was still working and DW had gone on Medicare we got hit with 2nd tier of IRMAA because of a one year spike in my 8ncome. I filed the form along with first 2 pages of latest taxes to show it was a one year blip and they cut back one level of IRMAA. Worth a try, otherwise it takes 2 years before reduced income is reflected.
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Ya. We are second tier this year and will be again in 2023 and thereafter. Second tier is bad enough at essentially double the base rate. Unfortunately we are uncomfortably close to the third tier, depending on the threshold annual increases vs our ongoing income growth. It does make me wonder if we should drop Medicare B and go with FEHB only, but we are a bit chicken on that option. Keeping an eye on it.
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"Luck favors the prepared mind"
Pasteur
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