The 2024 IRMAA second tier is AGI of 206-258K.
My best guess estimate for tax year 2025 is that the second tier will top out around AGI of 264K but this is just based on my rough conservative guess. The actual tiers won't be set until later in the year. I always try to give myself some cushion and not approach the IRMAA tier too closely.
This is the truth....we won't know real 2026 IRMAA for a while, so give yourself some room for awhile using the '23 tier(s).I will also note you don't want to convert "all" of their IRA - leave some income to fill up those inflation adjusted tax brackets in the future! And you really need to think in terms of 2024 income vs projected 2026 IRMAA.... It puts my head in a swirl. The overall goal is to smooth their tax burden out, and that means a "reasonable" RMD, not 0. You need to use a tax software model (or hack in Excel) to play with the yearly numbers...The % are interesting way to look at it as its a $6708.08 hit for MFJ parents but it does allow them to take out $386,000 (cant tell what the actual number is etc based on inflation etc). At the rate I am converting it would take them 3-4 more years to convert all of the tIRA but using the above numbers for 2024 could mean 2 years. Mom is going to have to take RMDs next year FYI. The biggest worry is for hit for inherited IRAs Spouse/Kids etc which is part of all this.
What is the Finance Buff? Link?
https://thefinancebuff.com/medicare-irm ... a-brackets
Also, if there is a concern in posts about estimated taxes and un-even income, I think a person can file Annualized Income form 2210 and spread out the tax burden, for things like ROTH conversions. The tax prep folk i used, did that last year 2023
Statistics: Posted by wasanengineer — Mon Feb 19, 2024 2:28 pm — Replies 20 — Views 1332