[Pat2015]

Originally Posted by CoachKandSportsguy

Although true, this example was specific with two SS income earners, married, and not the highest, but simple math fairly high for the example of the impact of a potential tax change

So lets run that IRMMA scenario:
back of the napkin/envelope concepts for those that need the reminder

SS Income: $72K
Status: Married
Converted IRA: 97K

Total IRMMA income: $169K

Current IRMMA married Threshold: $210K

IRMMA threat, minimal
EXCEPT
when your spouse passes away in the next 12 months, and in two years you are filing single with a two year loopback at married incomes

So then Pugchief mentioned financial taxable income,

OK, lets conceptualize it:

By including the financial income: In absolute terms, the $97K Roth conversion $ amount will push the filer into the next tax bracket, because it's a back of the envelope concept. In reality, with the financial constraint goal of staying in the lowest tax bracket, as stated in the conceptual example, the maximum IRA ROTH conversion will estimated lower by the amount of the financial income, hitting the maximum income at the top of the lowest tax rate bracket

For both cases, IRMMA penalty risk remains the same/identical.

The point of the example is: don't use old models when tax rates change, and have a strategy with your financial consultant about your specific strategy. .

The other is not to be scared of IRMMA without modeling the impact . . . but also remember that the future is very uncertain, and most plans work until they don't, most times the reason is beyond your control, but that is the reality of future uncertainty. ..

as always, good luck out there. . we all will need it.

Agree with your scenario. Also, taxes are only going in one direction based on the deficient and they are quite low now. Additionally, if a spouse dies and there is substantial IRA money sitting in the account, the remaining spouse is now taxed as a single. Do you want to pay more taxes and lose more of the amount that you think you have in your IRA?