Let’s define high-income taxpayers as those who will have to pay taxes on 85% of their social security benefits after they begin RMDs. Each time a married couple’s MAGI exceeds $170,000, $214,000, $267,000, or $320,000 by even $1 their joint annual Medicare premiums two years hence can increase by up to $2,424. The dollar amounts for singles are half these levels. These premium increases are essentially tax increases. This session will discuss what taxpayers can do both before and after age 70.5 to minimize the size of their future Medicare premiums.

Overview: General review of subject from a broad perspective/dive into basic knowledge on a skill or topic. For newer CFP or unfamiliar with subject

Course Information
Course Date:
October 03, 2018
Course Objectives
  • Define Modified Adjusted Gross Income, that is, the measure of income used to determine the level of future Medicare premiums
  • Identify at least three reasons why, after the death of a one spouse of a married couple, the surviving spouse's marginal tax rate and/or future level of Medicare premiums may be higher. For this question, assume the married couple's income consists of Social Security benefits plus required minimum distributions and the surviving spouse's RMDs will be similar in size to the couples' RMDs
  • Understand whether a Roth conversion in say 2018 might increase or decrease each of the following: a) Income taxes paid for 2018; b) The level of Medicare premiums paid in 2020; c) Income taxes paid in 2019 and future years; and d) The level of Medicare premiums paid in 2021 and future years
FPA Annual Conference 2018: Tax-Efficient Withdrawal Strategies for High-Income Taxpayers
Speaker Information
William R. Reichenstein, CFA  [ view bio ]
Individual topic purchase: Selected
Financial Planning Association
CFP CE: 1.00
FPA Member Price:$29.00
Non-Member Price:$49.00