Impact of 401(k) Withdrawals on Medicare Premiums

Reported about 23 hours ago

Withdrawing $85,000 from a 401(k) can lead to increased Medicare premiums due to the Income-Related Monthly Adjustment Amount (IRMAA), but these increases are not permanent. Medicare premiums for Parts B and D are influenced by household income, and any changes will reflect income from two years prior. Thus, current withdrawals affect future premiums, and managing withdrawal amounts can help mitigate costs in later years. Consulting a financial advisor may provide tailored strategies to manage retirement income and Medicare expenses.

Source: YAHOO

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