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A $1.8 Million 401(k) and Social Security Coming Up? Drain It Before 70 to Dodge the IRMAA Cliff

Some retirees are draining traditional 401(k) accounts before age 70 to delay Social Security benefits. This approach aims to reduce lifetime taxes and avoid Medicare IRMAA surcharges. By using retirement funds as a bridge, individuals can secure higher monthly payouts later.

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New reports detail specific 401(k) balance scenarios and the impact of claiming Social Security at 62.

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  1. High Earners Use 401(k) Bridge Strategy to Avoid IRMAA Cliff

    Some retirees are draining traditional 401(k) accounts before age 70 to delay Social Security benefits. This approach aims to reduce lifetime taxes and avoid Medicare IRMAA surcharges. By using retirement funds as a bridge, individuals can secure higher monthly payouts later.

    What's confirmed:

    • Delaying Social Security benefits until age 70 can result in 76% higher lifetime benefits.
    • Income from a 401(k) or other qualified retirement plan does not affect the amount of Social Security benefits received.
    • Spending 401(k) funds early and delaying Social Security benefits to age 70 is a strategy used by high-income couples to cut taxes.

    Still unconfirmed:

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