I received my IRMAA increase, Arrgh!

[TheWizard]

Holy Hell, I had never heard about this until last week ...... Same thing happened to us..... DW is drawing SS since she turned 62, she is 69 now..... I am 61..... Back in 2022 we lost our home to Hurricane Ian..... Insurance denied our claim because of flood surge..... We decided to move to higher ground 100' above sealevel. I pulled out 250k for a new to us home and we have started our next chapter...... I had no clue about the IRMAA until she received her notice from SS...... This past Friday I gathered up electronic tax returns 2021, 2022, and I estimated out 2023. Then dropped off at our local SS office to appeal the decision on the additional cost..... Hopeful that the "LIFE CHANGING EVENT" as we never would have pulled that money out of my IRA ....... What are the thoughts on this getting resended in our case ??

("rescinded")
I would say unlikely that they would categorize this as one of the seven life changing events.

And this sort of thing (infrequent large expenditures) is a good reason for doing Roth conversions up to a certain amount even when there's no clear tax arbitrage benefit. You then have a good sized tax-free slush fund...

 

[Chuckanut]

IRMAA is not a cliff, it’s a tiered structure. With a cliff, like the ACA, one additional $mof imcome and the subsidy disappears. With the Medicare tiers, or ladder, higher levels of income lead to reduced levels of subsidy / higher prices, like rungs on a ladder.

Ok, I’ll change the wording and use the word ‘step’. IMO, it’s still not implemented as well as it could be in this modern day of computerized math calculations.

 

[LakeRat1]

("rescinded")
I would say unlikely that they would categorize this as one of the seven life changing events.

And this sort of thing (infrequent large expenditures) is a good reason for doing Roth conversions up to a certain amount even when there's no clear tax arbitrage benefit. You then have a good sized tax-free slush fund...

I spoke with the local SS CSR, she stated that this does qualify as a life changing event .... I am hopeful ..... I have a slush fund of 150k in my money-market checking account ..... So much to learn being retired Thanks

 

[oldtimer]

I spoke with the local SS CSR, she stated that this does qualify as a life changing event .... I am hopeful ..... I have a slush fund of 150k in my money-market checking account ..... So much to learn being retired Thanks

Which life changing event was checked on the SSA-44 form?

 

[LakeRat1]

Which life changing event was checked on the SSA-44 form?

She told me to explain in a letter what the money was used for and that the "Loss of income producing property" Within the form it states evidence "An original copy of an insurance company adjusters statement of loss or a letter from a state or federal goverment about the uncompensated loss" I provided documentation from FEMA, SBA, and the Insurance Provider we had at the time --- Time will tell ... I am hopeful after talking with her on the phone

 

[wmc1000]

She told me to explain in a letter what the money was used for and that the "Loss of income producing property" Within the form it states evidence "An original copy of an insurance company adjusters statement of loss or a letter from a state or federal goverment about the uncompensated loss" I provided documentation from FEMA, SBA, and the Insurance Provider we had at the time --- Time will tell ... I am hopeful after talking with her on the phone

Here's wishing you success on your SS recission filing

 

[EastWest Gal]

I learned early in my second Bachelorhood that any gal I got serious with had to be able to afford on her ownthe life style she had chosen. IOW, neither of us is dependent on the other. And, both of us need to be financially independent of the other. If one is better off and chooses to spend his/her money to upgrade the experience for both, great! That’s a nice gift. But neither of us is dependent on the other for their chosen lifestyle.

So far the above works pretty well.

Back to IRMAA. I think it would be less painful if the cliffs we go over were not so steep. The guy who’s is $1 over the threshold pays the same increase as the gal who is tens of thousands of dollars over the threshold. A more graduated increase would take a lot of the psychological pain out of IRMAA, IMO.

"I think it would be less painful if the cliffs we go over were not so steep. The [gal] who's is (sic) $1 over the threshold pays the same increase as the [guy] who is tens of thousand of dollars over the threshold.

There, fixed it for you. What was that post about? Men vs women? Or IRMAA?

 

[LakeRat1]

Here's wishing you success on your SS recission filing

After three letters, five phone calls, and two visits to the local SS Admistration Office, my DW got her full benefits re-instated....... Lesson Learned !!!!

 

[MichaelB]

After three letters, five phone calls, and two visits to the local SS Admistration Office, my DW got her full benefits re-instated....... Lesson Learned !!!!

Nice! Great news indeed.