A $450,000 IRA withdrawal to buy a condo counts as taxable income, pushing a couple's MAGI to $550,000 and triggering $12,710 in extra Medicare premiums for 2028.
Social Security sets IRMAA using tax returns from two years prior, so a 2026 withdrawal raises 2028 premiums and Form SSA-44 offers no relief for voluntary withdrawals.
Spreading IRA withdrawals over four years at $112,500 annually keeps MAGI below the surcharge threshold, while splitting across just two years saves almost nothing.
Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)
A married couple, both 66, find the condo they want to retire to. It costs $450,000. They want to own it outright, so they plan to withdraw $450,000 from his traditional IRA this year, before accounting for the taxes they'll owe. Two years from now, Social Security will send each of them a letter with a Medicare bill neither one planned for.
#years #security #withdrawal #income
Social Security sets IRMAA using tax returns from two years prior, so a 2026 withdrawal raises 2028 premiums and Form SSA-44 offers no relief for voluntary withdrawals.
Spreading IRA withdrawals over four years at $112,500 annually keeps MAGI below the surcharge threshold, while splitting across just two years saves almost nothing.
Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)
A married couple, both 66, find the condo they want to retire to. It costs $450,000. They want to own it outright, so they plan to withdraw $450,000 from his traditional IRA this year, before accounting for the taxes they'll owe. Two years from now, Social Security will send each of them a letter with a Medicare bill neither one planned for.
#years #security #withdrawal #income
20 hours ago
