Beat the IRMAA Cliff: Drain the 401(k) Before 70 for Bigger Social Security Payoffs

The piece explains a six-year strategy for high earners with large traditional 401(k) balances: drain pre-tax funds from 64 to 70 to keep MAGI just under the first IRMAA tier (~$218,000 for joint filers) and then claim Social Security at 70. This can shrink the next year’s RMDs (e.g., from about $94k on a $2.5M balance to roughly $53k on a smaller balance) and, by delaying Social Security to 70, boost benefits by about 24% (and survivor benefits). Roth conversions can help fill tax headroom without large cash-outs. Be mindful that IRMAA uses a two-year lookback, so timing is crucial to avoid higher premiums—this is a sponsor-backed, strategy-focused retirement planning approach.