For all our talk about retirement has anyone looked at the RMD and it's effect on your medicare premium at age 72? What if anything does this affect your planning?
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Originally posted by LivingAlmostLarge View PostFor all our talk about retirement has anyone looked at the RMD and it's effect on your medicare premium at age 72? What if anything does this affect your planning?
The goal is to have a level Medicare premium and a level tax bracket.
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It's called IRMMA and it kicks in @ 65 when you start Medicare. It can be quite onerous if your income is high, and RMDs count as income. Between SS, pension and RMD's, I don't have a chance in hades of hitting the first threshold @ $176k for MFJ.
From medicare.gov (the premium amount is per person)
The standard Part B premium amount in 2021 is $148.50. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.$88,000 or less $176,000 or less $88,000 or less $148.50 above $88,000 up to $111,000 above $176,000 up to $222,000 Not applicable $207.90 above $111,000 up to $138,000 above $222,000 up to $276,000 Not applicable $297.00 above $138,000 up to $165,000 above $276,000 up to $330,000 Not applicable $386.10 above $165,000 and less than $500,000 above $330,000 and less than $750,000 above $88,000 and less than $412,000 $475.20 $500,000 or above $750,000 and above $412,000 and above $504.90
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corn, I'm guessing the first column is for singles, the 2nd is for married filing jointly. What's the third column?Steve
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While helping my dad build out his retirement plan (just retired last month), I started looking into RMDs.... And woof, I'm gonna do everything I can to avoid it entirely. He's 63 right now, with over $1M in his traditional TSP. He should be able to get it down roughly in half by the time RMDs kick in, which should be enough to keep the RMDs from forcing higher withdrawals than he's planning for. The hint of good news with RMDs is that the first dollars withdrawn from retirement accounts count toward your RMDs, so if you're already withdrawing sufficient funds annually to cover the RMDs, you're good and RMDs are no factor.
Similar to corn's situation, we'll have pension & eventually SS income, so that'll drive up our taxable income as-is. My plan is to convert DW's TSP account into IRAs, then during a downturn, convert the traditional portion to Roth -- gratefully, her traditional portion is fairly low, only $36k of $160k. Roughly similar plan for myself, though my traditional side is much larger, so I'd have to do it more slowly -- currently $127k of $324k. We shouldn't have a problem converting it all to Roth before RMDs, so gratefully I don't expect it to be a major issue for us.Last edited by kork13; 07-10-2021, 12:50 PM.
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Originally posted by corn18 View PostIt's called IRMMA and it kicks in @ 65 when you start Medicare. It can be quite onerous if your income is high, and RMDs count as income. Between SS, pension and RMD's, I don't have a chance in hades of hitting the first threshold @ $176k for MFJ.
From medicare.gov (the premium amount is per person)
The standard Part B premium amount in 2021 is $148.50. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium. [TABLE]
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Originally posted by disneysteve View Postcorn, I'm guessing the first column is for singles, the 2nd is for married filing jointly. What's the third column?
https://www.smpbenefits.com/assets/u...nts/ssa-44.pdf
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Originally posted by kork13 View PostWhile helping my dad build out his retirement plan (just retired last month), I started looking into RMDs.... And woof, I'm gonna do everything I can to avoid it entirely. He's 63 right now, with over $1M in his traditional TSP. He should be able to get it down roughly in half by the time RMDs kick in, which should be enough to keep the RMDs from forcing higher withdrawals than he's planning for. The hint of good news with RMDs is that the first dollars withdrawn from retirement accounts count toward your RMDs, so if you're already withdrawing sufficient funds annually to cover the RMDs, you're good and RMDs are no factor.
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Originally posted by corn18 View PostIt's called IRMMA and it kicks in @ 65 when you start Medicare. It can be quite onerous if your income is high, and RMDs count as income. Between SS, pension and RMD's, I don't have a chance in hades of hitting the first threshold @ $176k for MFJ.
From medicare.gov (the premium amount is per person)
The standard Part B premium amount in 2021 is $148.50. Most people pay the standard Part B premium amount. If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.$88,000 or less $176,000 or less $88,000 or less $148.50 above $88,000 up to $111,000 above $176,000 up to $222,000 Not applicable $207.90 above $111,000 up to $138,000 above $222,000 up to $276,000 Not applicable $297.00 above $138,000 up to $165,000 above $276,000 up to $330,000 Not applicable $386.10 above $165,000 and less than $500,000 above $330,000 and less than $750,000 above $88,000 and less than $412,000 $475.20 $500,000 or above $750,000 and above $412,000 and above $504.90 james.c.hendrickson@gmail.com
202.468.6043
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