Boldin’s IRMAA Bracket Limit Roth Conversion Strategy
🔹 Key Objective
Maximize Roth conversions without crossing into a higher Medicare IRMAA surcharge tier.
How it works:
Medicare Part B and D premiums jump in steps (called IRMAA brackets) once your Modified Adjusted Gross Income (MAGI) passes certain thresholds.
Boldin projects your income and Roth conversions year by year.
It then recommends conversions up to, but not over, the IRMAA threshold you choose (e.g., keep MAGI under $246,000 for married filers in 2025).
Key Driver: Avoids sharp jumps in Medicare premiums that can add thousands per year per person, even if you’re still inside the same tax bracket.
Note: This strategy is bracket-constrained, not necessarily optimized for the absolute lowest lifetime IRMAA.
🔹 How It Differs from the Tax Bracket Strategy
Feature | IRMAA Bracket Strategy | Tax Bracket Strategy |
Constraint | Medicare IRMAA income thresholds | Federal income tax brackets |
Focus | Minimize Medicare premium surcharges | Minimize marginal tax spikes |
Conversion Pattern | Fills IRMAA tiers (e.g., just under $246k MAGI) | Fills tax brackets (e.g., just under 24% tax bracket) |
Trade-off | May leave more IRA balance → higher RMDs later | May trigger higher IRMAA costs but reduces future RMDs |
🔹 Which Is Better?
IRMAA Bracket Strategy → Better if your priority is keeping Medicare premiums predictable and avoiding “stealth taxes.”
Tax Bracket Strategy → Better if your priority is lifetime tax minimization, even if it means paying some IRMAA surcharges.
Reality: Many people blend them — filling up a tax bracket only until they bump into the next IRMAA tier.
✅ In Boldin, this is basically a specialized version of the bracket strategy, but instead of using tax brackets as the ceiling, it uses IRMAA brackets.