lem1955
Recycles dryer sheets
- Joined
- Mar 1, 2007
- Messages
- 315
I'm a fortunate daughter. My father (last of my parents) died in January and left me about $800,000. My portfolio is now in a range and configuration that has me needing to look more carefully at IRMAA, NIIT, SS taxation, etc. The rules are confusing and prioritizing between them is causing me some headaches. I anticipated the inheritance, so did what I could to do ROTH conversions from a hefty tIRA account, but I was only able to convert a little less than a $100K over the last four years while trying to stay below the first IRMAA tier increase. Even then, I missed one year and had to pay the surcharge in 2021. Now my tIRA and Inherited IRA combined are 34.4% higher than at the end of 2022. I still have two years before I turn 70 and start collecting a good size SS check. DW and my combined SS will be north of $65K a year. I'm thinking I should allow MAGI to go as high as $249,000 by reducing the Inherited IRA and depositing in my Taxable investment account what I don't need. Bite the IRMAA surcharge for 2025 but avoid the NIIT hit this year and next year. I will probably need some of that Taxable account anyway to move to a CCRC in 2026 or 2027. (DW is 10years older than me.) I welcome your comments and further suggestions on my situation and plan.