Q. Required minimum distribution requirements will put me close to the Medicare cut off, so I need to reduce my TSP balance by converting current TSP money, by changing contributions to go into a Roth TSP or by selling mutual fund investments that are causing taxable gains every year. I plan to retire Jan. 3, 2020. I am already 70.5 years. Would one of these options be better than another or is there another option that you could suggest?
A. You should consult a tax accountant about ways to reduce your MAGI, but you shouldn’t get your hopes up. The system is designed to ensure that people who can afford it pay more for Medicare Part B, so “hiding” income is difficult. If you will be eligible for health insurance through the FEHBP in retirement, then you might be better off skipping Part B altogether and saving the premium.