[Six‑thousand‑nine‑hundred IRMAA Shock Hits Near‑Retirement Pair After Unplanned Portfolio Rebalance]
A $1,000,000 Income Portfolio
If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money; you want your assets to generate lasting income while you enjoy life.
Because capital gains flow into modified adjusted gross income (MAGI), both spouses jumped two IRMAA tiers, the income‑related surcharge tacked onto Medicare Part B and Part D. Combined, the surprise came to roughly $6,900.
IRMAA operates as a cliff. Cross a threshold by a single dollar and the full surcharge applies to both spouses for the entire year. For 2026, the first joint‑filers threshold sits at $218,000 in MAGI, with tier boundaries after that at $274,000, $342,000, $410,000, and $750,000. The standard Part B premium is $202.90 per month, and it climbs to $689.90 per month at the top tier. That is per person.
Income Strategies for Portfolios Exceeding One Million Dollars
If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money; you want your assets to generate lasting income while you enjoy life.
Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today!
Procedural Fixes Most Retirees Overlook
A $1,000,000 Income Portfolio
If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money; you want your assets to generate lasting income while you enjoy life.
Income Strategies for Portfolios Exceeding One Million Dollars
If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money; you want your assets to generate lasting income while you enjoy life.
A $1,000,000 Income Portfolio
Because capital gains flow into modified adjusted gross income (MAGI), both spouses jumped two IRMAA tiers, the income‑related surcharge tacked onto Medicare Part B and Part D. Combined, the surprise came to roughly $6,900.
IRMAA operates as a cliff. Cross a threshold by a single dollar and the full surcharge applies to both spouses for the entire year. For 2026, the first joint‑filers threshold sits at $218,000 in MAGI, with tier boundaries after that at $274,000, $342,000, $410,000, and $750,000. The standard Part B premium is $202.90 per month, and it climbs to $689.90 per month at the top tier. That is per person.
Income Strategies for Portfolios Exceeding One Million Dollars
Procedural Fixes Most Retirees Overlook
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Rebalance inside the IRA first. Sell equities and buy bonds within a traditional or Roth IRA. No 1099, no capital gain, no IRMAA exposure.
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Harvest losses against realized gains. If a taxable‑account sale is unavoidable, pair it with losers elsewhere in the taxable account. Realized losses net directly against realized gains, reducing MAGI dollar for dollar.
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Split large trades across a calendar boundary. Sell half in December and half the following January. That spreads the MAGI hit across two tax years, potentially keeping each year below an IRMAA threshold rather than clearing two tiers in one shot.
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Redirect the cash flows you already have. Channel new dividends, interest, and required minimum distributions (RMDs begin at age 73) toward the underweight asset class. This rebalances the portfolio quietly over 12–24 months without a single sale.
What to Do Before the Next Rebalance
First, before touching a taxable account, map every planned trade against the joint MAGI thresholds of $218,000, $274,000, and $342,000. If a rebalance would clear a line, move the trade into an IRA or spread it across two tax years. Rebalance often, rebalance small, and rebalance in the right account.
A $1,000,000 Income Portfolio
If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money; you want your assets to generate lasting income while you enjoy life.
Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today!
