Reply to How many people max out BOTH the 401k and 457(B)?

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Reply to "How many people max out BOTH the 401k and 457(B)? "

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[quote=Anonymous][quote=Anonymous]
Another consideration for some people may be that Medicare Part B premiums are based on your income. If you are pulling out high RMDs (which you are forced to do), you will have a high income in retirement. It may be that you saved money on your kid's college, but you may be paying it back to the government in the form of Medicare premiums. Of course who knows what will happen with healthcare in this country. It's a roll of the dice. You might need to spend your own money on healthcare in the future.

[/quote]
You're referring to IRMAA surcharges. They are calculated based on a 2-year look back on your income. So when you turn 65 and go on Medicare, SSA will look at your income for the tax year when you were 63. And yes, RMDs when you turn 73 (or 75) can bump you into the top IRMAA brackets. And IRMAA is like a tax cliff, you go $1 over into the higher IRMAA bracket and you get charged the IRMAA premium for that higher bracket (it's not a last dollar marginal tax like income taxes). [/quote]

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