euro
Thinks s/he gets paid by the post
- Joined
- Oct 4, 2015
- Messages
- 2,350
agree
I received my IRMAA increase, Arrgh!
- Thread starter Time2
- Start date
agree
Car-Guy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I got thinking about this thread so I ran my numbers for this year (for 2025 IRMAA) and it "looks" like I'll be able to stay about 5k under the first tier. That's getting closer than I like but it's okay I guess. Hope I haven't forgot anything.
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Hope I haven't forgot anything.
Yeah, that’s the really tough part!
Are you using the 2025 estimates?
I'm sorry that this happened to you. It shouldn't be this way but this is one the key things you have to manage when you're 65+ and still have good income. Also even if you do manage to get it under control you just push the problem into later years. The real time to take care of this is after you and/or your spouse retires and before you hit 63. For me that was just a five year window.
Car-Guy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Just curious. I’m targeting a $5K headroom from the 0% inflation 2025 estimate - same source. I haven’t made all my taxable moves yet. I have to keep checking and also making sure I haven’t forgotten anything.
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Fortunately everything is in Quicken including any bonuses I received. But there is still plenty to happen in Dec.
TheWizard
Thinks s/he gets paid by the post
$5k is rather conservative.
I usually go closer to $1k from TFB's projections...
aja8888
Moderator Emeritus
Now that I am filing "single" this year, this has become a worry. 
Now that I am filing "single" this year, this has become a worry.
That’s a bummer.
Yes thankful we can make those withdrawals, but except for my error, we live on about $70k and have been doing Roth Conversions. Normally we don't have that income.
I'm taking myself out to the wood shed!
I have been redeeming I bonds this year and stopped redeeming when I got to the second tier of IRMMA. What I did not know was about the NIIT (Net investment Income Tax) Tax Hawk says I will owe an extra $2,300 this year in NIIT.
The reason I am redeeming I Bonds is that I have accumulated $400,000 in deferred interest and I am now 78 and do not want to leave a mess for my Heirs to deal with Treasury Direct.
The reason I am redeeming I Bonds is that I have accumulated $400,000 in deferred interest and I am now 78 and do not want to leave a mess for my Heirs to deal with Treasury Direct.
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
That’s too close for me because I don’t know my foreign tax credit and associated extra income until well into Jan. Could exceed $3000.
Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Not intended. You didn't mention it, and you were going to find out anyway sooner or later. For all I knew you didn't opt for Part D...Are you pouring sand on my wound?
Yes, I do have $53.80 to pay on my Part D.
TheWizard
Thinks s/he gets paid by the post
So I'm guessing heirs don't get stepped up basis with I Bonds?
TheWizard
Thinks s/he gets paid by the post
I see.
But does that credit affect your AGI?
Seems to me, watching an NFL game right now, that most credits are later on the 1040 form, well after your AGI has been nailed...
It was a bit of pulling your leg
. But the truth is I don't understand the part D of Medicare. What does it cover? And it is part of the original $174.70 that I did pay. I never knew it was something, until recently.I'm looking over my Humana Drug plan and I don't see where medicare covers any of the drugs I take.
I can only suspect that the $53.80 I'm being charged is for, in hospital drugs. But I'm listening for anyone that knows.
audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
The foreign tax credit itself doesn’t, however, I get additional income associated with the tax credit that I don’t find out until after the end of the year, and this does add to my AGI.
Initially I get the income net any foreign tax paid distributed to me. But later the next year I am assigned additional taxable income (which I never received) that is associated with foreign tax paid. You get taxed on the gross, not the net.
It’s quite messy and I’m to the point where I wish I didn’t have international funds.
Last edited:
stedmakr
Dryer sheet aficionado
For Time2 - I don't want the following to sound too pointed - trying to be helpful
Both you and your wife will be on medicare for the rest of your lives. It is worth spending a few hours understanding how Medicare works, what it covers and its costs. You can go to Youtube and put in the search bar "IRMAA Part D penalty" and 10 to 12 videos will pop up. Some of the videos are presented by salesmen so be wary. You can get a local volunteer medicare counselor from a national organization called SHIP to give you a detailed Medicare brief via ZOOM or at a counseling site. Each state has SHIP volunteers (normally retirees) who are trained in the ins and outs of Medicare.
We are currently in Medicare's open season (until 7 Dec). Since you have a drug plan you should check your plan's cost every year. Premiums change, formularies change and tiers change every year. Many low cost plans one year may become extremely expensive the next year. I am a volunteer medicare counselor and a couple of weeks ago a beneficiary saved $3700 dollars by changing plans from her current plan to a different plan. Check your Plan D costs every year.
Since you have a PDP (prescription drug plan) I assume you have a Medicare supplement/medigap plan. Do not ever change to an Advantage plan (Part C). If you do you will find your future self subject to prior approvals which will lead to denied or delayed health care services.
Both you and your wife will be on medicare for the rest of your lives. It is worth spending a few hours understanding how Medicare works, what it covers and its costs. You can go to Youtube and put in the search bar "IRMAA Part D penalty" and 10 to 12 videos will pop up. Some of the videos are presented by salesmen so be wary. You can get a local volunteer medicare counselor from a national organization called SHIP to give you a detailed Medicare brief via ZOOM or at a counseling site. Each state has SHIP volunteers (normally retirees) who are trained in the ins and outs of Medicare.
We are currently in Medicare's open season (until 7 Dec). Since you have a drug plan you should check your plan's cost every year. Premiums change, formularies change and tiers change every year. Many low cost plans one year may become extremely expensive the next year. I am a volunteer medicare counselor and a couple of weeks ago a beneficiary saved $3700 dollars by changing plans from her current plan to a different plan. Check your Plan D costs every year.
Since you have a PDP (prescription drug plan) I assume you have a Medicare supplement/medigap plan. Do not ever change to an Advantage plan (Part C). If you do you will find your future self subject to prior approvals which will lead to denied or delayed health care services.
Masquernom
Full time employment: Posting here.
Time2, you can take the year before tax return to your local SS office. Show them that you accidently took two withdrawls. Explain you won't do that next year. Fill out the form and they should leave you at the previous year's income level.
The year I started Medicare, I had sold some property the previous year and my wife worked most of the year. She retired and the property sale was a one time thing. I explained it to the SS office and they adjusted my IRMAA, no problem.
The year I started Medicare, I had sold some property the previous year and my wife worked most of the year. She retired and the property sale was a one time thing. I explained it to the SS office and they adjusted my IRMAA, no problem.
I appreciate the input! This IRMAA year is something I never expected to be exposed to. As I said we are comfortable with spending about $70k a year. However, I have been withdrawing a little more for Roth Conversions. I had been taking a lump sum withdrawal in December after doing income calculations figured to stay under the next tax bracket.
This had worked well for 3 years until 2022 when I made double withdrawal error and end up having Champagne and Caviar with IRMAA.
I still don't know what the $53.80 covers.
With medicare on my statements I see Medicares covers, say an x-ray at a certain amount, then my Medigap plan covers the rest. With drugs on my Humana statement all I see is Humana paid $x.00 and I pay the rest, there is no payment from Medicare.
So where does the $53.80 come from?
Thanks
