Ouch, this IRMAA stuff makes my head hurt!
But it's worse, because being single and having a pension and being in a VHCOL area, i figure i'm in IRMAA trouble already and there's nothing i can do about it.
But fortunately i still have 8 years or so before i reach IRMAA age. So i can ignore it until then. Or i can use those 8 years to try to reduce the damage?
But then that requires trying to predict & optimize for the ever-changing tax laws decades ahead of time, which doesn't seem likely to be too successful!
And my fear is that once there's enough money sitting in Roths, the government will not keep its hands off of it. I could certainly see Roth distributions being, say, included in MAGI even if they're still not taxable. So then, all my very expen$ive efforts to move my TIRA into Roth would turn out to be an expensive failure.
And if i'm trying to optimize for future taxes decades down the road, then it seems i really do need to try to predict all the possible tax changes and their probabilities.
Like i said, all this stuff makes my head hurt.
I'm guessing this is where tax diversification comes in -- you don't try to optimize too much for an unknown future tax scenario, but instead have some taxable, some TIRA, some Roth.
But it's worse, because being single and having a pension and being in a VHCOL area, i figure i'm in IRMAA trouble already and there's nothing i can do about it.
But fortunately i still have 8 years or so before i reach IRMAA age. So i can ignore it until then. Or i can use those 8 years to try to reduce the damage?
But then that requires trying to predict & optimize for the ever-changing tax laws decades ahead of time, which doesn't seem likely to be too successful!
And my fear is that once there's enough money sitting in Roths, the government will not keep its hands off of it. I could certainly see Roth distributions being, say, included in MAGI even if they're still not taxable. So then, all my very expen$ive efforts to move my TIRA into Roth would turn out to be an expensive failure.
And if i'm trying to optimize for future taxes decades down the road, then it seems i really do need to try to predict all the possible tax changes and their probabilities.
Like i said, all this stuff makes my head hurt.
I'm guessing this is where tax diversification comes in -- you don't try to optimize too much for an unknown future tax scenario, but instead have some taxable, some TIRA, some Roth.
Statistics: Posted by MadHungarian — Sun Sep 29, 2024 9:19 pm — Replies 17 — Views 1455
