JoeWras
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Sep 18, 2012
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- 11,727
Correct - 2028 IRMAA will be based on your 2026 return/income that you'll file in 2027.
Thanks!
Correct - 2028 IRMAA will be based on your 2026 return/income that you'll file in 2027.
$40K is pretty conservative. You don’t know the 2028 IRMAA levels in 2026. But by late that year you’ll know the 2027 levels which should be higher and are very likely safe, and some sites will project the 2028 levels.In 2026, I'll plan to stay at least $40k below IRMAA. I want no surprises.
The plan would be to do our last big Roth conversion in 2025 tax year. That should be safe, correct?
$40K is pretty conservative. You don’t know the 2028 IRMAA levels in 2026. But by late that year you’ll know the 2027 levels which should be higher and are very likely safe, and some sites will project the 2028 levels.
If your last Roth conversion is 2025 then yes I’d say your safe.
I don’t think I would be upset about paying Aunt IRMAA if I could make an income that was substantially over an IRMAA limit on a regular basis. What would upset me would be to pay Aunt IRMAA because I am just a few dollars over the limit. That would be painful.
In any case, I have done all I can to keep IRMAA off my lawn.
10 to 15k is about my cutoff too. Why? Because you never know (until it's to late) if you forgot something. You'll find it when preparing and filing your tax return. Been there and done that.OK, OK. I'll loosen up and make sure not to hit the post too close, say at least $15k. Next year will be easier for me to estimate my Q4 income. It is a bit confusing this year since I transferred a lot of ETFs from Vanguard to Fidelity.
I’m giving myself $5K extra headroom compared to the projected IRMAA levels
I try to stay at least 5% under an IRMAA tier, because I don't trust myself to get it exactly right.
Well I probably blew it early this morning. I hit a ~10k jackpot at a Casino that will "likely" push me in the first tier. Well if that turns out to be true, at least now I have some breathing room before I get to tier two.
Stuff happens!
Congratulations! Being a gambler makes it inherently difficult to predict and control your income. Was it on slots or table games?
We hit IRMAA and will be paying higher for DW's Medicare (I'm not yet on Medicare) for 2024. The issue was that we sold 3 rental properties last year and thus our AGI was quite high. I was expecting the IRMAA hit, but property values had skyrocketed here, we had tenants moving out, I did all the work on the rentals and I needed knee surgery...so the time was just right to sell. We made an enormous gain on each house....we averaged paying around $65k for them and we sold them for $162-$180k....so we are happy.
The IRMAA will only be for one year. We also wrote a huge tax check ($62k) to the IRS early this year, but that also was expected...no complaints.
Next year a lot will change for us, as the rentals will be fully off the tax return (we sold one in 2023), DW starts collecting SS late in the year, and our income will be very minimal (we'll take a modest amount from TIRAs). I have been paying a CPA to do our taxes due to the rentals and owning a handyman business...but the handyman business is easy accounting (I'm the only employee and revenues are usually less than $10k/year) so I'll start doing our own taxes for 2024 tax year.
Finally things are beginning to settle down.
Actually it was multi hand/deck video poker game but they count that like a slot machine.
Sure, but it doesn't help with IRMAA, the winnings are still counted as income.I guess you could "lose big" and deduct it, right?
Sure, but it doesn't help with IRMAA, the winnings are still counted as income.
Gambling losses increase (up to gambling gains) the itemized deduction total, which in turn reduces taxable income, not AGI nor MAGI. Gambling losses can only help reduce AGI if one makes their living as a professional gambler (Schedule C).Well, losses are deductible, but only on Schedule A (and therefore "wasted" most of the time because people don't itemize), and only to the extent of winnings.
So to the extent that one has losses and itemizes and has winnings to offset, those gambling losses increase the itemized deduction total, which in turn reduces AGI, which in turn reduces MAGI and can in turn reduce IRMAA.
Or uses the "per session" method to report only the net winnings "per session" (e.g., for a given day). That can reduce AGI.Gambling losses increase (up to gambling gains) the itemized deduction total, which in turn reduces taxable income, not AGI nor MAGI. Gambling losses can only help reduce AGI if one makes their living as a professional gambler (Schedule C).
Gambling losses increase (up to gambling gains) the itemized deduction total, which in turn reduces taxable income, not AGI nor MAGI. Gambling losses can only help reduce AGI if one makes their living as a professional gambler (Schedule C).
Or uses the "per session" method to report only the net winnings "per session" (e.g., for a given day). That can reduce AGI.
P.S. I know 2Cor521 knows that itemized deductions don't reduce AGI - we all have brain spasms from time to time....
The plan would be to do our last big Roth conversion in 2025 tax year. That should be safe, correct?
Hi all. IRMAA rookie here. Happy to find this thread and the TFB site.
DW starts Medicare in 2025. I'm a year later. As I understand it, our 2023 MAGI needs to be below $210K-ish to safely avoid IRMMA in 2025. Though $212K seems pretty safe as well.
I've got a fairly solid estimate for 2023 taxes, pending the final Roth conversion. I doubt AGI will vary more than about $2K vs my current estimate.
Given all that, I assume my Roth conversion amount should be based on target AGI of around $208K (no tax-exempt interest).
Just looking for some confirmation that I've somewhat figured this out. Thanks.