The Retirement 'Rule of $1 More'

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The “Rule of $1 More” is a concept that illustrates how even the smallest increase in income—whether from a Roth conversion, a part-time job, or a retirement account withdrawal—can quietly push you over thresholds that trigger a cascade of expensive tax consequences. The good news? Knowledge is power, so here are the components you should consider:

📌 Medicare IRMAA Cliffs: Cross a specific income line, and you could pay hundreds more per month for Medicare Parts B and D

📌 Social Security Taxation: Up to 85% of your benefit may become taxable based on “provisional income”—a formula that hasn't been updated in decades

📌 Capital Gains Exposure: A single dollar of ordinary income could turn once-tax-free gains into taxable ones at 15% or 20%

📌 RMD Ripple Effects: Required withdrawals from retirement accounts starting at age 73 can raise your overall income and disrupt your tax strategy

Remember: You can turn that extra dollar into opportunity—not overwhelm—with smart planning, proactive tax management, and ongoing guidance from a trusted advisor. In retirement, a thoughtful strategy is your best defense against letting $1 derail your purpose-driven financial plan.