Financial/tax consequence
Hello Terry,
I’m 70, single and own a stock (non IRA) and a SEP-IRA money market fund. I’m collecting SS, retired. I want to start taking money from these accounts to place elsewhere (chicken $) and don’t know how much to take out per year without triggering AGI limits. What can you advise or recommend? Thank you,
Terry Says
If you own a stock outside your retirement plan and sell it, you will either have a gain or a loss.
Your losses can offset $3,000 of ordinary income, lowering your taxes.
If you held the stock longer than one year, you will pay a lower capital gains tax rate. But the gain will be added to your adjusted gross income.
That won’t impact your Social Security benefit, unless it moves you into a much higher tax bracket. In that case, more of your SS would be subject to income tax. Consult your tax advisor on the amount of tax you will have to pay on the gain.
But it could impact your annual Medicare premium.
Here are the Medicare premium impacts:
Here are the 2025 IRMAA brackets and premiums for Medicare:
Individuals:
$106,001 to $160,000: Additional $70 monthly surcharge.
1
$160,001 to $213,000: Additional $140 monthly surcharge.
1
$213,001 to $267,000: Additional $210 monthly surcharge.
1
$267,001 and above: Additional $280 monthly surcharge.
1
Couples:
$194,001 to $320,000: Additional $70 monthly surcharge.
1
$320,001 to $426,000: Additional $140 monthly surcharge.
1
$426,001 to $534,000: Additional $210 monthly surcharge.
1
$534,001 and above: Additional $280 monthly surcharge.
1
These brackets determine the additional premiums for Medicare Part B and Part D based on your modified adjusted gross income (MAGI).
