Quote:
Originally Posted by Aces4
I must be missing something... it's important not to pay $4,000. premium for Medicare insurance when your joint income is over $246,000 a year? What a burden! But I guess it's important to fleece the younger generation for one's costs.
I think I'll go wash my socks and underwear.
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As you said — you must be missing something……….maybe this will help………
I just read that in 2024 IRMAA will kick in at $103,000 MAGI for a single filer and $206,000 for married filing jointly. (Based on 2022)
The tax law changes of 2017 resulted in fewer people itemizing; therefore, fewer taxpayers get the charitable deduction.
What a QCD does is give those of the required age and who have IRAs the opportunity to give a donation to a qualified charity, a 501(c)(3), and to not have the amount of the donation added to the AGI — when following the specific rules for a QCD. (This cannot be done willy-nilly. The correct steps must be taken. It’s not difficult. But a lot of people don’t know about it.)
I don’t think QCDs are intended to “fleece the younger generation for one’s costs” — like you said.
The QCD can help with one’s Medicare costs, but one does not get to keep the money. It has to be given to charity.
Being aware of IRMAA can be important because once IRMAA’s thresholds are crossed, Medicare costs increase. IRMAA takes no prisoners. IRMAA is an either/or. No percentages like brackets use. IRMAA can be a surprise to those who have been unaware and then that increase shows up 2 years after the AGI crosses the threshold.
Understanding the QCD can present a choice to give to charity and get a tax benefit when using the standard deduction. Nothing selfish about that.
You’re welcome.
Boomer