RMD & IRMAA

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Cincy_1988
Posts: 11
Joined: Sun Jun 02, 2024 12:13 am

RMD & IRMAA

Post by Cincy_1988 »

Hello

As you know, RMD affects the modified adjusted gross income (MAGI), which in turn changes the income-related monthly adjustment amount (IRMAA) used to determine Medicare cost.

I've set my expenses, which include Medicare cost, to just track inflation. Is there a way to model the impact of RMD on medical expenses?

Thanks!
jimr
Posts: 840
Joined: Thu Feb 28, 2008 6:48 pm

Re: RMD & IRMAA

Post by jimr »

Unfortunately, there isn't any way to do this automatically.

You may be able to get a rough approximation of the extra expense by adjusting the income tax rate upwards to account for the extra costs that will be incurred when RMDs are higher, but it'd be a very rough estimate at best. Another approach might be to create an separate expense entry that starts when RMDs start to account for the higher expense. A third approach would be to just use a worst-case expense for medicate costs that already takes into account the highest cost you might end up paying due to higher income.
Cincy_1988
Posts: 11
Joined: Sun Jun 02, 2024 12:13 am

Re: RMD & IRMAA

Post by Cincy_1988 »

Thank you.

I'm trying to be "precise" when there're so many unknowns in finance/investment.

As a structural engineer (I'm a faculty), we use a lot of basic science and math but use different factors to reduce the probability of failure. There's no certainty in real life.
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