Why Your Retirement Income May Be Lower Than Expected

We Discuss a crucial yet often overlooked issue in retirement planning—how required minimum distributions (RMDs) from tax-deferred accounts can unexpectedly push retirees into higher tax brackets and IRMAA surcharges. Using a real-life example, the speaker explains how a couple with $3.1 million in retirement savings faces significant taxable withdrawals, potentially locking them into IRMAA penalties indefinitely. The video stresses the importance of proactive tax planning, such as Roth conversions, to mitigate future tax burdens and protect wealth for heirs. With rising account balances and tax implications, this topic is becoming a major concern for retirees.