From Yahoo Finance: 2025-04-08 08:30:00

Joyce, 71, withdrew $60,000 from her TSP, raising her tax bracket and Medicare premium. While the premium increase isn’t permanent, it’s crucial to strategize withdrawals to reduce taxes and IRMAA surcharges. IRMAA is based on MAGI, which can be lowered by deductions and credits. Consider consulting a financial advisor for guidance.

IRMAA, triggered by high incomes, can raise Medicare Part B premiums to $594/month. The 2024 thresholds for IRMAA are $103,000 for singles and $206,000 for couples. IRMAA is based on income from two years prior, with adjustments reflecting inflation. Consult a financial advisor for tax-efficient withdrawal strategies.

Form 1040 helps calculate taxable income, starting with total income, minus adjustments, deductions, and credits to determine the tax owed. While taxable income affects taxes, MAGI determines Medicare premiums. Consider working with a financial advisor for tax planning and maximizing efficiencies.

To reduce taxes and IRMAA surcharges, consider converting tax-deferred accounts to Roth IRAs before RMDs begin at 73. QCDs can help distribute funds without affecting income. Consult a financial advisor for a withdrawal plan that considers income needs, taxes, and IRMAA to optimize efficiency.

Maintain an emergency fund for unexpected expenses, ensuring it’s liquid in a stable account. High-interest accounts can earn compound interest to fight inflation. For financial advisors looking to grow business, SmartAsset AMP offers marketing solutions. Consult a financial advisor for personalized financial planning advice.

Read more: Will Withdrawing $60k From My Retirement Plan Permanently Raise My Medicare Premiums?