I just reviewed my estimates for our 2024 taxes, and found I have a real live example of an opportunity to influence our IRMAA payments in 2026.
According to my current estimates of our 2024 income, we will be $13,000 over my estimate of one of the IRMMA brackets, resulting in an increased IRMAA payment of $3,000 in 2026.
We are retired, and the only significant variables in our income estimate are year-end distributions by mutual funds in our taxable accounts and the amount of our QCDs. I can get a fix on the year-end distributions in a couple months, and we can adjust the amounts of the QCDs until we take out the balance of our RMDs, which we generally do in November.
The estimate of 2026 IRMAA brackets if of course a bit tricky. I start with the estimates on https://thefinancebuff.com/medicare-irm ... ckets.html and am currently using the mid-point between their estimates for zero and 3% inflation, which seems probably a bit conservative. The actual could easily vary from that by a couple of thousand dollars, most likely upwards I think.
Giving away $13,000 to save $3,000 seems on the surface foolish. But using the old trick of "bunching" deductions, we could easily advance next year's contributions for a charity or two and reduce our MAGI by that amount. Our we could just be more generous -- that would put us more in line with our charitable donations in recent years. Seems worth considering. We'll keep an eye on it the next couple of months.
Anyone else watch this issue?
According to my current estimates of our 2024 income, we will be $13,000 over my estimate of one of the IRMMA brackets, resulting in an increased IRMAA payment of $3,000 in 2026.
We are retired, and the only significant variables in our income estimate are year-end distributions by mutual funds in our taxable accounts and the amount of our QCDs. I can get a fix on the year-end distributions in a couple months, and we can adjust the amounts of the QCDs until we take out the balance of our RMDs, which we generally do in November.
The estimate of 2026 IRMAA brackets if of course a bit tricky. I start with the estimates on https://thefinancebuff.com/medicare-irm ... ckets.html and am currently using the mid-point between their estimates for zero and 3% inflation, which seems probably a bit conservative. The actual could easily vary from that by a couple of thousand dollars, most likely upwards I think.
Giving away $13,000 to save $3,000 seems on the surface foolish. But using the old trick of "bunching" deductions, we could easily advance next year's contributions for a charity or two and reduce our MAGI by that amount. Our we could just be more generous -- that would put us more in line with our charitable donations in recent years. Seems worth considering. We'll keep an eye on it the next couple of months.
Anyone else watch this issue?
Statistics: Posted by TerryR — Fri Aug 30, 2024 9:39 am — Replies 2 — Views 228