TAKE FROM ROTH TO KEEP IRMAA down
Hello I’m 63single and retired. I have mortgage of $98k @ 6.87 % . I have the money to pay it off in my taxable mutual funds or my ROTH . I’m having hard time to get a answer on where to take from to pay it off . I’m pretty close this year to my $106k IRMAA limit.
Terry Says
Well, that’s not such a high rate — and you don’t want to lose the flexibility that cash affords. After all, you’re pretty young to be fully retired. Lots of expenses could come along. In fact, have you checked the cost of your health insurance, since you’re not yet on Medicare? And do you have any idea what supplements will cost you when you do go on Medicare? Lots of moving parts here.
So I’d advise sticking with that mortgage. But if you insist, take it out of the Roth.
And, come to think of it, I’m surprised that you’re worried about IRMAA now. Yes, there is a two-year lookback in calculating higher Medicare Part B and D premiums. But the IRMAA levels will be slightly higher in two years!
Look for my upcoming article on IRMAA.
