Addition of $2.0 trillion SpaceX to Nasdaq 100 lifts index-fund IRAs by ~$200K, raising first RMDs by $7,500 at age 73.
SpaceX’s inclusion in the Nasdaq 100 has increased the value of index-fund IRAs by roughly $200K, pushing a $900K balance toward $1.1M. The adjustment adds about $7,500 to the first required minimum distribution at age 73, according to estimates.
Retirees holding Nasdaq-100 funds in traditional IRAs face higher taxable income, potentially pushing Social Security benefits from 50% to 85% taxable. The change may also trigger Medicare IRMAA surcharges through age 75, complicating tax planning for those nearing RMD age.
Financial forums show growing concern among retirees, with one post on the topic receiving over 2,700 upvotes. Advisors suggest partial Roth conversions between ages 68 and 73 to mitigate the tax impact before RMDs take effect.