Medicare's two-year lookback rule means a retiree's $120,000 annual 401(k) withdrawals at 63 and 64 set his Part B premiums at 65 and 66.
A $120,000 withdrawal pushes a single filer $11,000 over the IRMAA threshold, raising Part B premiums to $284.10 monthly and costing roughly $2,297 extra over two years.
Covering part of living expenses with cash savings or qualified Roth withdrawals instead of 401(k) funds can keep reported MAGI below the surcharge threshold entirely.
Americans who work with a financial advisor have saved more than twice as much for retirement, on average. Find out what one could change for you: SmartAsset's free quiz matches you with up to three vetted fiduciary advisors in about five minutes. (Sponsor)
A 62-year-old leaves his job with a large traditional 401(k) and a simple plan. He will draw $120,000 a year to live on, then start Social Security at 67. He sees ages 63 and 64 as silent bridge years. Medicare will use income from those years to calculate his first two premium bills, something he may not have anticipated.
#premiums #covering #roth
A $120,000 withdrawal pushes a single filer $11,000 over the IRMAA threshold, raising Part B premiums to $284.10 monthly and costing roughly $2,297 extra over two years.
Covering part of living expenses with cash savings or qualified Roth withdrawals instead of 401(k) funds can keep reported MAGI below the surcharge threshold entirely.
Americans who work with a financial advisor have saved more than twice as much for retirement, on average. Find out what one could change for you: SmartAsset's free quiz matches you with up to three vetted fiduciary advisors in about five minutes. (Sponsor)
A 62-year-old leaves his job with a large traditional 401(k) and a simple plan. He will draw $120,000 a year to live on, then start Social Security at 67. He sees ages 63 and 64 as silent bridge years. Medicare will use income from those years to calculate his first two premium bills, something he may not have anticipated.
#premiums #covering #roth
12 hours ago
