How Our Tax Planning Saved a Client Over $6,000! A Case Study

We're often asked by prospective clients to share examples of how our financial planning expertise can benefit them. Whether it's reducing taxes, avoiding a costly mistake or higher investment returns with less risk, we're constantly working to help you make the most of your money.

Our latest YouTube video goes in depth on an actual client's case study, so be sure to watch it.

How to Keep IRMAA Premiums Low

For people on Medicare, your Modified Adjusted Gross Income (MAGI) determines your Income-Related Monthly Adjustment Amount or IRMAA premium. Even a small income spike can significantly raise your Medicare premiums. In our case study we were able to reduce a client's MAGI to save them over $6,000, while maintaining their required annual income level of $240,000. 

Beware the IRMAA Tax Cliff

Unlike regular income taxes, which are progressive, meaning that only the income over a certain amount gets taxed at the higher rate, IRMAA premiums are what we call a “tax cliff.” If your income exceeds the threshold by even one dollar, you’re taxed at the higher premium tier for all your Medicare costs—no gradual phase-in. 

This case is just one example of how our team of experienced certified financial planners analyze your entire financial picture on an on-going basis to uncover opportunities for savings. Whether it’s tax reduction, investment optimization, or maximizing Social Security benefits, we customize strategies to your situation.