Don Graves: The Immediate Impact of IRMAA Planning on your practice
Don is a well respected personality in the industry as well just an amazing human being. We were lucky enough to work with and have him join our growing ranks of IRMAA Certified Planners. He recently shared the below note with us about his experience.
I wanted to share a recent experience that perfectly illustrates how I’ve been able to apply the knowledge gained through the IRMAA certification in my practice.
Today, I was meeting with an advisor and his clients who were in the process of making a series of steps to prepare themselves for a lower tax future. One of those steps involved rolling over $927,000 from a 401(k) into another instrument using a specific strategy. While they understood the income tax consequences of this move, what they hadn’t fully grasped was the impact it would have on their Medicare Part B premiums.
When I explained that their Medicare Part B would likely increase from $175 per person to nearly $600 per person two years after this year’s tax return, they were understandably concerned. This equates to nearly $425 more taken out of each month per person! The question that immediately came up was, “What is IRMAA?”
At that point, I took them to your website and walked them through how the $927,000 rollover would impact not only their Modified Adjusted Gross Income (MAGI) but also place their Medicare Part B in the highest IRMAA level for at least one year. Additionally, it would increase the taxes they pay on their Social Security to the highest levels as well.
The clients were stunned by the potential cost implications and were incredibly appreciative of the insight. When they asked what they could do, I explained that while they wanted to roll over the entire amount in one year, a more structured conversion over time might allow them to keep their MAGI under the $206k threshold or at least better manage their IRMAA brackets. I was able to show them how the Reverse Mortgage Line of Credit can also assist and be utilized now and in the future!
This was my first opportunity to apply what I’ve learned from the IRMAA certification, and it made a substantial impact on the clients’ financial planning. Your resources have been invaluable, and I’m excited to continue incorporating this expertise into my work.
Thank you for the excellent training and the tools you’ve provided. I’m looking forward to more opportunities to use this knowledge in meaningful ways.
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Who is IRMAA Certified Planner?
IRMAA Certified Planner was created to help educate financial professionals about the concepts, rules and regulations surrounding Medicare’s IRMAA. With industry leading research and tools, we are committed to educating and certifying each individual that works through us, has the most up to date information to help their clients plan and prosper.
