Retiree Caps 401(k) Draw at $50,000 to Avoid Medicare IRMAA at $109,000
Updated
Updated · 24/7 Wall St. · Jun 12
Retiree Caps 401(k) Draw at $50,000 to Avoid Medicare IRMAA at $109,000
3 articles · Updated · 24/7 Wall St. · Jun 12
Summary
$50,000 in annual 401(k) withdrawals leaves a 65-year-old retiree well below Medicare’s first IRMAA trigger, keeping 2028 premiums tied to 2026 income from jumping.
The key threshold is $109,000 of modified adjusted gross income for single filers in 2026, and IRMAA applies as a two-year lookback with a cliff structure rather than a gradual phase-in.
Crossing that line by $1 lifts 2026’s standard $202.90 monthly Part B premium by another $81.20 a month plus $14.50 for Part D—about $1,148 a year per person.
That gap-year window between ages 65 and 73 also creates room for Roth conversions: a single filer could convert roughly $59,000 more and still stay under the first surcharge tier.
The strategy aims to cut future required minimum distributions, which could rise toward $75,000 on a $2 million balance and later push retirees into higher tax brackets and successive IRMAA tiers.