Katelyn discusses two important planning topics that can have a lasting impact on retirement costs: understanding Medicare's 2026 IRMAA income brackets and choosing a retirement date with tax consequences in mind.
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The Fed15 Podcast | Ep. 161: IRMAA Brackets and Smart Retirement Timing
Katelyn explains how Medicare's 2026 Income Related Monthly Adjustment Amount (IRMAA) brackets work and why higher income can lead to increased Medicare Part B and Part D premiums. She discusses the two year income lookback, common income events that can trigger higher premiums, including Roth conversions, TSP withdrawals, capital gains, and Required Minimum Distributions, as well as strategies that may help reduce future IRMAA exposure. Katelyn also reviews when retirees may qualify to appeal an IRMAA determination following certain life changing events.
She also discusses how choosing a federal retirement date can affect taxes. She explains the partial year income effect, how lump sum annual leave payouts may increase taxable income, and why evaluating multiple retirement dates can help reduce unexpected tax consequences. She also covers the importance of estimating retirement income, reviewing tax scenarios, and planning well before retirement to help make more informed financial decisions.
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