One solution may be to take a large chunk from the IRA in a given year, up to a bracket you are comfortable paying. Pay that year’s income tax and 2 years down the road pay the higher IRMAA. Doing this once or twice (rather than small amounts yearly that still exceed IRMAA limits) may eliminate or reduce the widow tax and yearly IRMAA increases also down the road. Take the hit in one year rather than exceeding IRMAA every year.
We always bought homes we could afford, but only if we really liked them. We spend so much time in our homes, there’s no way we would settle for less. Of course not everyone is in a position to afford the house they want. As retirees, we are in a home much larger than what 2 people need, but it is what we want. Downsizing to a smaller home to reduce expenses and upkeep would make our everyday experiences less enjoyable.
Same here. My daughter got married at the Ritz Carlton in Sarasota, on the beach. Less than 5 years later, divorced. Second marriage they eloped. No costs at all. Still married 8 years later. Fortunately we could afford it, but many cannot, and the prices are indeed outrageous.
Medicare gap insurance for a couple is about $10,000 a year, almost 40% of the average Americans SS benefit. Medicare Advantage may have low to no premiums, but you get from them what you pay for. General Averages by Beneficiary Type
All retired workers: ~$2,090 per month
All beneficiaries (including retirees, disabled workers, dependents, and survivors): ~$1,938 per month
Great story. We’ve always been frugal when it comes to everyday things, such as groceries. Why pay over $5 a gallon of milk when Costco or BJs sells it for under $3. But not on bigger important things, like helping the kids buy a home, going on vacation, or buying something where quality is important. As one commenter mentioned they did, we’ve already prepaid a 12 day trip the end of November/early December to Italy, Zurich and Germany to see their holiday celebrations. Booked first class flights for us and my son and his spouse. Train tickets (one from Milan to Zurich through the Alps) and certain events are already paid for. So it appears frugality and spending can exist.
My kids will each inherit a large after tax amount as well as a large (but much smaller) share of my rollover IRA. They will have to withdraw their IRA $ over 10 years, and if it increases their taxes, they can pay the tax bill from their inheritance. It made sense for me to fund traditional 401k because of a very high income and tax bracket. That extra money compounded over time made the traditional contributions a much better plan. My wife will have to deal with RMD’s if I go first, but at VG they list the amount to be withdrawn yearly so that will be easy. That may push her into IRMAA tier 1 at some point (Widow tax) but she will be able to pay those premiums.
My wife and I have relatively small Roth IRAs because I was in a very high tax bracket.. I always contributed the max to my 401k and my employer matched 50% of the total. This worked great when I was working. I put the $18k plus $6k in, for $24k, and my employer put in another $12k. Now I have to take a larger RMD along with SS for both of us, and some dividends, most of which are qualified. We have no pensions. Last year our final tax was 6% of MAGI, and this was with a 6 figure income, so the taxable 401k was the best choice for us.
Yes, believe it. For those who struggle financially, it is not because of imprudent behavior, so it cannot be done with prudent behavior. You can’t get blood from a stone.53% of Americans carry credit card balances to cover essential living expenses like food, housing, and utilities.
Key Debt and Usage Statistics
Covering Essentials: A recent Achieve survey shows that over half of consumers rely on credit cards because everyday costs outpace their income.
Long-Term Debt: Out of those carrying a balance for essentials, 25% have been in debt for six months or longer.
Income Breakdown: Lower-income households face heavy strains; data shows that roughly 59% of Americans earning under $50,000 a year carry credit card debt from month to month.
General Balances: Overall, about 46% to 47% of all American cardholders carry a credit card balance from month to month rather than paying it off entirely
Comments
One solution may be to take a large chunk from the IRA in a given year, up to a bracket you are comfortable paying. Pay that year’s income tax and 2 years down the road pay the higher IRMAA. Doing this once or twice (rather than small amounts yearly that still exceed IRMAA limits) may eliminate or reduce the widow tax and yearly IRMAA increases also down the road. Take the hit in one year rather than exceeding IRMAA every year.
Post: Is a Roth conversion an optimal strategy in my situation?
Link to comment from September 19, 2026
We always bought homes we could afford, but only if we really liked them. We spend so much time in our homes, there’s no way we would settle for less. Of course not everyone is in a position to afford the house they want. As retirees, we are in a home much larger than what 2 people need, but it is what we want. Downsizing to a smaller home to reduce expenses and upkeep would make our everyday experiences less enjoyable.
Post: Jonathan’s Parting Thoughts: No. 7
Link to comment from September 13, 2026
That is perfect. Ironic how when it is ‘their’ money, they are not as extravagant, or wasteful.
Post: A Wedding Too Far
Link to comment from September 12, 2026
Same here. My daughter got married at the Ritz Carlton in Sarasota, on the beach. Less than 5 years later, divorced. Second marriage they eloped. No costs at all. Still married 8 years later. Fortunately we could afford it, but many cannot, and the prices are indeed outrageous.
Post: A Wedding Too Far
Link to comment from September 12, 2026
i assume you are saying the widow’s RMD will be $34,043, not that she owes that amount in taxes?
Post: Widow’s IRA Choice
Link to comment from September 12, 2026
Medicare gap insurance for a couple is about $10,000 a year, almost 40% of the average Americans SS benefit. Medicare Advantage may have low to no premiums, but you get from them what you pay for. General Averages by Beneficiary Type
Post: A bleak picture for retirement in the future?
Link to comment from September 6, 2026
Great story. We’ve always been frugal when it comes to everyday things, such as groceries. Why pay over $5 a gallon of milk when Costco or BJs sells it for under $3. But not on bigger important things, like helping the kids buy a home, going on vacation, or buying something where quality is important. As one commenter mentioned they did, we’ve already prepaid a 12 day trip the end of November/early December to Italy, Zurich and Germany to see their holiday celebrations. Booked first class flights for us and my son and his spouse. Train tickets (one from Milan to Zurich through the Alps) and certain events are already paid for. So it appears frugality and spending can exist.
Post: The Intentional Spendthrift
Link to comment from August 31, 2026
My kids will each inherit a large after tax amount as well as a large (but much smaller) share of my rollover IRA. They will have to withdraw their IRA $ over 10 years, and if it increases their taxes, they can pay the tax bill from their inheritance. It made sense for me to fund traditional 401k because of a very high income and tax bracket. That extra money compounded over time made the traditional contributions a much better plan. My wife will have to deal with RMD’s if I go first, but at VG they list the amount to be withdrawn yearly so that will be easy. That may push her into IRMAA tier 1 at some point (Widow tax) but she will be able to pay those premiums.
Post: Traditional or Roth
Link to comment from August 30, 2026
My wife and I have relatively small Roth IRAs because I was in a very high tax bracket.. I always contributed the max to my 401k and my employer matched 50% of the total. This worked great when I was working. I put the $18k plus $6k in, for $24k, and my employer put in another $12k. Now I have to take a larger RMD along with SS for both of us, and some dividends, most of which are qualified. We have no pensions. Last year our final tax was 6% of MAGI, and this was with a 6 figure income, so the taxable 401k was the best choice for us.
Post: Traditional or Roth
Link to comment from August 30, 2026
Yes, believe it. For those who struggle financially, it is not because of imprudent behavior, so it cannot be done with prudent behavior. You can’t get blood from a stone. 53% of Americans carry credit card balances to cover essential living expenses like food, housing, and utilities. Key Debt and Usage Statistics
Post: Americans and their credit cards
Link to comment from August 29, 2026