Investing - Theory, News & General • Why all the IRMAA angst? [IRMAA: Resistance is futile]

^ Certainly if you're on Medicare during your work years, you may very well find yourself in the highest bracket. Currently, I think it's a modified AGI over $750,000 for a couple. Once you stop working, most people would not find that their MAGI year-after-year would be over $750,000 on non-work income alone; but you're right, if this is you, then the top IRMAA bracket becomes perpetual and non-negotiable, and you'll just accept it. However, you'd be very unlikely to care what you're spending on premiums so there's that.

I'm not so sure about that. People making big money can find themselves back in the high brackets once they start making RMDs. I don't know about the $750,000 brackets, but if a couple has worked at good salaries and has been fortunate with 401.k and IRA accounts, it's not too hard to get into the $8,000 premium per year bracket. I think $8,000 is real money. No?

It's not just people making "big money"; it's people who put maybe too much effort into deferring income, resulting in almost all their retirement savings being subject to RMDs. Now everyone takes for granted the existence of Roth IRAs and even Roth employer plans, but those options weren't always available. Add in a maybe unanticipated change from MFJ to filing single and some favorable investment returns and you don't have to have been a high-earner (certainly not by Boglehead standards) to have relatively high IRMAA.

Statistics: Posted by tibbitts — Wed Aug 21, 2024 6:44 pm — Replies 237 — Views 17510

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