Advisors Urge $185,800 Annual 401(k) Drawdowns Before 70 to Avoid Medicare IRMAA
Updated
Updated · 24/7 Wall St. · Jun 22
Advisors Urge $185,800 Annual 401(k) Drawdowns Before 70 to Avoid Medicare IRMAA
3 articles · Updated · 24/7 Wall St. · Jun 22
Summary
$185,800 in yearly pre-Social Security 401(k) withdrawals can keep a married couple near the $218,000 IRMAA threshold, avoiding Medicare premium jumps that start with just $1 of excess MAGI.
The strategy targets ages 64 to 70: spend down traditional balances first, delay Social Security to 70, and use the 24% bracket efficiently before required minimum distributions begin at 73.
On a $2.5 million pre-tax balance, that can cut a first-year RMD to about $53,000 from roughly $94,000, reducing the risk that RMDs plus two Social Security checks trigger higher Part B and Part D surcharges.
Delaying benefits from 67 to 70 also lifts Social Security by 24% before COLAs, turning interim tax-paid withdrawals into a larger inflation-linked survivor benefit.
Because IRMAA uses a two-year income lookback and counts dividends and capital gains, advisors say couples should map MAGI annually from Medicare enrollment at 65 through age 73 and consider Roth conversions for remaining headroom.