lem1955
Recycles dryer sheets
- Joined
- Mar 1, 2007
- Messages
- 315
Some mistakes I can share on any social media site so friends can learn from mine. This one results in sharing too much about my own income so I won't share on Facebook. But perhaps you can learn from mine.
In 2019 I needed to take about $95,000 from my Trad IRA to pay expenses in addition to other taxable income I had from other sources. I also converted $33,900 to ROTH. And at the last moment I withdrew another $31,500 to pay off my HELOC because the market had done so well. In total my MAGI came to $197,400 for the year. I didn't need to do the ROTH conversion or the HELOC payoff. But by doing so I triggered Income-Related Monthly Adjustment Amount of $59.40 on Medicare Part B and $12.30/month on Part D, for a total increase over my base Medicare cost of $860.40 for 2021. It feels good to be debt free, but it will feel much better when I can go back to below the IRMAA threshold income.
You can be sure I won't make THAT mistake again.
In 2019 I needed to take about $95,000 from my Trad IRA to pay expenses in addition to other taxable income I had from other sources. I also converted $33,900 to ROTH. And at the last moment I withdrew another $31,500 to pay off my HELOC because the market had done so well. In total my MAGI came to $197,400 for the year. I didn't need to do the ROTH conversion or the HELOC payoff. But by doing so I triggered Income-Related Monthly Adjustment Amount of $59.40 on Medicare Part B and $12.30/month on Part D, for a total increase over my base Medicare cost of $860.40 for 2021. It feels good to be debt free, but it will feel much better when I can go back to below the IRMAA threshold income.
You can be sure I won't make THAT mistake again.