[manaboutown]

Originally Posted by Haggar

I have the greatest respect for your projections. I have many clients who are asking me not because of IRMMA but what's the best thing for them in the long run? And the problem with any of these projects is: What will be the rate of investment growth? What will be the tax rates in the future?
And what the effect of a reduced amount to invest because of the taxes required to be paid in the year of conversion. If you're
in a higher bracket the investment amount could be reduced by 20-30% which will affect the yield and growth.

Someone mentions that the sale of a house (particularly a non-residence) could cause an increase in IRMMA (which will calculated for 2024 based on your 2022 return). Yes it could but there a form you can file which requests medicare to reduce the premium based upon non-recurring events or life changing situations. Their response to filing this form is very quick.

A friend of mine sold her long time home in Miami at a price that threw her into IRMAA even though she has little retirement income other than Social Security. She appealed and lost even though it was a once in a lifetime gain. Her SS income for 2023 was substantially reduced. In her case IRMAA was confiscatory. For couples selling a primary residence held the requisite number of years the first $500K LTCG is excluded from counting as income toward IRMAA but for a single person the exclusion is only $250K. IRMAA is vicious and merciless, particularly to folks receiving a once in a lifetime LTCG such as from selling their long term primary residence, the family farm or a mom and pop business.