Calculate maximum IRA balance to avoid IRMAA surcharges at all 5 tiers
Note:
Calculations show the maximum IRA balance that would keep MAGI at or below each IRMAA tier threshold. In practice, you'd want to stay away from the limit by a few thousand dollars to avoid the IRMAA Tax Cliff.
Assumptions:
No tax-exempt interest or other MAGI adjustments
RMD is the only withdrawal from the IRA
Taxable Social Security calculated based on provisional income rules
IRMAA Surcharges: Part B + Part D combined.
IRMAA Thresholds:
IMPORTANT NOTE The IRMAA Thresholds and Penalties move at different rates, and that is what makes IRMAA worse over time. The income thresholds are indexed to CPI. The penalty is not: it is tied to Medicare, which grows faster. This tool carries thresholds forward at 3.2% a year, the ten-year average of the US consumer price index, and the penalty on the Medicare Trustees' own published path, which starts near 6.6% a year and eases toward 3.8% in the long run. Enter your age above to see both, side by side, in that year’s dollars and in today’s. The gap between those two columns is the part that compounds against you.