Quote:
Originally Posted by Boomer
CoachKandSportsguy,
You are right. Details do matter. So? What do you mean?
IRMAA is based on AGI. This is a good time of year to start thinking about IRMAA and doing something, if you can, to avoid crossing that threshold into higher Medicare costs. Some people will use QCDs to do that. Others might time when it is worth taking a capital gain.
As we know, IRMAA kicks in two years later, and the 2026 IRMAA numbers are not out yet, so all we can do is guess what 2026 will bill us for our Medicare based on 2024 AGI.
Sometimes there is no way to avoid IRMAA. I think it is especially unfair to single people. Married couples get a lot more room to maneuver their AGI to avoid IRMAA.
Altavia is correct in spotting the possible need for the OP to try to factor in IRMAA. Whether that is the reason for the OP's question is not clear. But being aware of IRMAA now and planning to stay below the threshold can save a lot of money -- two years from now.
Altavia is also right in saying to look into Roth conversions if under RMD age. Check those tax brackets and do it if you can.
To those who commented that it's too early -- Nope!
Boomer (who is not an accountant)
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From my perspective, if someone is not aware of how the progressive income tax structure works, seems likely are other factors impacting their taxes that have been overlooked.
Getting professional help is probably the best advise given here.