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Tom Meaglia, ChFC®, AEP®,


Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507


Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750


Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120




May/June 2023

Will Your RMDs Trigger Medicare Surcharges?

Will Your RMDs Trigger Medicare Surcharges

Since you started working, you were probably told about the benefits for saving as much as possible in your employer's tax-deferred retirement plan. Your taxable income is reduced by the amount you contribute. And your savings has the potential to accumulate tax-free until you're ready to withdraw it in retirement.

But why didn't anyone tell you about IRMAA?

What Is IRMAA?
IRMAA is an acronym for income-related monthly adjusted amount, and it’s the bane of Medicare recipients who’ve amassed substantial savings in pretax retirement accounts. Once you begin taking required minimum distributions (RMDs) from your 401(k) or other tax-deferred accounts, the amount you’re required to withdraw may push your income above the Medicare base limit and trigger higher premiums, in the form of a surcharge, on Parts B and D.

How Much Higher?
The monthly Medicare premium for individuals and married joint recipients is $164.90. Surcharges on monthly premiums begin with a modified adjusted gross income (MAGI) over $97,000 for individuals and $194,000 for married couples. Monthly premiums, including surcharges, start at $230.80 and rise incrementally to $560.50 with income greater than $500,000 for individuals and $750,000 for couples. Medicare premiums are deducted from your Social Security benefit before you receive it.

One Solution: A Roth IRA
Consider shifting some of your money to a Roth individual retirement account. You contribute after-tax dollars, but withdrawals are tax-free once you reach age 59½, if you’ve owned the account for at least five years. However, there are no required withdrawals from a Roth IRA. The 2023 contribution limit is $6,500, or $7,500 if you’re age 50 or older. Single and head-of-household filers with MAGI of $138,000 or less and married joint filers with MAGI of $218,000 or less can contribute up to the limit. The ability to contribute to a Roth IRA phases out for single and joint filers with incomes over $153,000 and $228,000, respectively.

HSA Contributions
If you participate in a high deductible health plan (HDHP), consider contributing to a health savings account (HSA). Contributions are tax deductible and withdrawals are tax free when used to pay medical expenses.


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Investment advisory services are offered through Fusion Capital Management, an SEC Registered Investment Advisor. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.
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