Thanks, I did think about it. And yes, the truth is that nobody knows the 2025 IRMAA numbers. I did find one source that predicted 2025 (for MFJ) at $206,000 for 0% inflation and $216,000 for 5% inflation. I suspect it will be somewhere in between, but I'm trying for the lower number if I can do it. It would be unfortunate if I went over the threshold by $1.Stinky wrote: ↑Thu May 04, 2023 12:12 pmI think that your plan for deferring taxable income is just fine.GaryA505 wrote: ↑Thu May 04, 2023 11:11 am OK all you MYGA-lovers!
I need to push some income into 2024 and beyond. I have a pretty good chunk of cash in a MUNI fund, but if I leave it there this year I will go over the first IRMAA cliff (due to tax-exempt interest getting included in MAGI for IRMAA). I also want to get set up for some possible MYGA-to-SPIA plays in the next 4-8 years or so. I'm not sure exactly when I want to start the SPIAs so I want some flexibility there (using shorter MYGAs that I can 1035 into new MYGAs to get to the start date for the SPIAs).
So, this is what I'm thinking:
$100k - t-bill(s), secondary market, can mature Jan 2024 or later, income taxed in 2024.
$100k - 2-year MYGA(s), at maturity can be 1035-exchanged into new MYGA(s).
$100k - 3-year MYGA(s), at maturity can be 1035-exchanged into new MYGA(s).
At maturity of the first MYGAs, they can be cashed out or 1035-rolled into another MYGA. For subsequent MYGAs, these can be cashed out at maturity or 1035-rolled into SPIAs when I'm ready for that.
Thoughts, opinions, rants, raves? Please don't mention a DIA because I'm not interested (yet). And yes, I'm aware that the interest from a MYGA, when rolled into a SPIA, isn't a "free lunch" because it will change the exclusion ratio of the SPIA.
One comment about IRMAA - it’s my understanding that your MAGI in 2023 will be used to determine your IRMAA surcharge for 2025. Further, the IRMAA breakpoints are adjusted upward each year for inflation. So maybe you’ll have more room in your 2023 MAGI than you think (because of the inflation adjustment) when it is used to calculate IRMAA. (Then again, maybe you’ve thought all this through already. In that case -never mind )
Edit: Here: https://thefinancebuff.com/medicare-irm ... ckets.html