[walterray1]

Originally Posted by CoachKandSportsguy

Absolutely correct BUT
the problem with RMDs is that one is forced to take a higher percentage each year as your age progresses. so what's 3% now will be 5% eventually, and 7% even later. .

So if you continue to earn 10 % on the remaining IRA funds, and you take out less than the annual return, your IRA is still growing and your distribution rate is also still growing by a larger percentage than the RMD percentage = RMD % + (Annual return - RMD %)

Assuming married couple status, the IRMMA tax won't effect you until you pass approximately $3M in the combined IRA (assuming no other taxable income and maximum SS income for both spouses). . I didn't calculate the single IRMMA threshold but assume its about 50% less (mental estimate, not modeled out)

So if you can target reducing your IRA balances combined to below $3M, by moving to ROTH IRA, you can put off the IRMMA tax until one spouse passes away. At the end of the day, the future is uncertain, and so is this outcome of this decision . .

Assuming that the market casino still returns 10% annually, the simple payback period is about 3.5 years, round to 4 years for conservatism, being incrementally taxed at 30%, and just live off SS and any existing withdrawals to live in the villages. .

BUT this is a tax avoidance scheme for those who prefer tax minimization versus wealth maximization. At a certain point of IRA wealth, the IRMMA tax is negligible to your total spendable income. . . .

time to visit a financial planner and look at your long term year by year assets, income, expenses, and resulting taxes. . if done properly, and I have done ours, you might be surprised at the outcome, good or bad. . i have no clue to your individual situation. .

good luck

To original OP Could you expand on your comments regarding IRMMA tax? You mention $3mm in IRA for married couple. Are you referring to a distribution of that amount or overall account value. My understanding is that account value only comes into play for RMD if one is at the RMD age. AGI threshold for max IRMAA impact on Medicare Part B for married couples filing jointly is $750,000 regardless of income source. Are we talking about two different things?