I received my IRMAA increase, Arrgh!

[Chuckanut]

I’d rather have IRMAA problems than be the guy who leaves the SS office and says to himself, “My Gosh! Is that all I have to live on for the entire month!”

Do your best to reduce taxes by using Roth conversions and other tools. Then sleep well at night knowing you can finance your retirement.

 

[brett]

I’d rather have IRMAA problems than be the guy who leaves the SS office and says to himself, “My Gosh! Is that all I have to live on for the entire month!”

Do your best to reduce taxes by using Roth conversions and other tools. Then sleep well at night knowing you can finance your retirement.

So true. I have never heard so many people complain about being wealthy or being financially secure!

As others have pointed out, would you like to be in the position of paying no tax?

 

[Dtail]

So true. I have never heard so many people complain about being wealthy or being financially secure!

As others have pointed out, would you like to be in the position of paying no tax?

Sometimes it can just be a creatively disguised humble brag.

 

[brett]

Sometimes it can just be a creatively disguised humble brag.

Could be.

In my experience people with real money seldom brag.

They do not feel the need and are no so inclined.

 

[Dtail]

Could be.

In my experience people with real money seldom brag.

They do not feel the need and are no so inclined.

Agree for the most part, but on the 20mm and up scale.
Not so sure in some cases on the 5 to 10mm scale.

 

[marko]

!
As others have pointed out, would you like to be in the position of paying no tax?

That sounds attractive. I'm sure there's an accountant out there who can do some maneuvering for me.

 

[harllee]

I don't get all this complaining about IRMAA. It is a rich person's problem. We get good health insurance from Medicare even with IRMAA tacked on. I just feel blessed that my income is high enough to be in the IRMAA bracket.

 

[Livefree]

Both my wife and I paid large IRMAA fees for 2023 and we got letters from social security that confirm it will end in January.


My wife turned 65 in July and was concerned that paying only 6 months of IRMAA wouldn't be enough, and would continue into 2024, but it looks like they were happy enough to get the 6 months..


What happens if you turn 65 in December? Do you get penalized for the new year too?

 

[Car-Guy]

I don't get all this complaining about IRMAA. It is a rich person's problem. We get good health insurance from Medicare even with IRMAA tacked on. I just feel blessed that my income is high enough to be in the IRMAA bracket.

Speaking for myself, it just the idea of having to pay more than others do, just because I've been financially successful. Same with tax brackets but that's another discussion.

 

[MichaelB]

Perhaps everyone should pay the full unsubsidized rate for Medicare B, which would be around $700 per person in 2024. That way we’d all be paying the same and not depending on taxpayer contributions.

Low income seniors could have a Medicare Advantage plan that is subsidized and affordable.

 

[audreyh1]

Both my wife and I paid large IRMAA fees for 2023 and we got letters from social security that confirm it will end in January.


My wife turned 65 in July and was concerned that paying only 6 months of IRMAA wouldn't be enough, and would continue into 2024, but it looks like they were happy enough to get the 6 months..


What happens if you turn 65 in December? Do you get penalized for the new year too?

No. It only lasts for the calendar year. You will pay IRMAA based on 2021 income for Dec 2023 and in Jan of 2024 it switches to the IRMAA based on your 2022 income.

 

[Livefree]

No. It only lasts for the calendar year. You will pay IRMAA based on 2021 income for Dec 2023 and in Jan of 2024 it switches to the IRMAA based on your 2022 income.

Yes I understand it only lasts for one year, and is based on 2 years prior income.



What I'm saying is if you turn 65 in November or December, you would only pay 1 or 2 months IRMAA payments, verses someone who turned 65 in January and had to pay a full year..

 

[Car-Guy]

Perhaps everyone should pay the full unsubsidized rate for Medicare B, which would be around $700 per person in 2024. That way we’d all be paying the same and not depending on taxpayer contributions.

Actually, I'd vote for that!

 

[audreyh1]

Yes I understand it only lasts for one year, and is based on 2 years prior income.



What I'm saying is if you turn 65 in November or December, you would only pay 1 or 2 months IRMAA payments, verses someone who turned 65 in January and had to pay a full year..

That is correct. I turn 65 next October, and so I will be paying the 2024 IRMAA for 3 months. I will only be paying for 3 months of Medicare that year, thus only 3 months of 2024 IRMAA.

 

[marko]

So true. I have never heard so many people complain about being wealthy or being financially secure!

"Nothing is more admirable than the fortitude with which millionaires tolerate the disadvantages of their wealth" (Jean Rostand)

 

[Midpack]

So true. I have never heard so many people complain about being wealthy or being financially secure!

As others have pointed out, would you like to be in the position of paying no tax?

While that may be true in some cases, it's often just people trying to optimize whatever $ they have - small, large or in between. Trying to manage your portfolio and make good decisions is not in itself complaining.

 

[ychuck46]

Speaking for myself, it just the idea of having to pay more than others do, just because I've been financially successful. Same with tax brackets but that's another discussion.

Same here. In my case I spent a lot of time and effort researching stocks and it worked out. For busting my hump I have the privilege of paying for others medical costs.

 

[jimbee]

Still a lot of whining on this thread. Sheesh.

 

[Time2]

I don't get all this complaining about IRMAA. It is a rich person's problem. We get good health insurance from Medicare even with IRMAA tacked on. I just feel blessed that my income is high enough to be in the IRMAA bracket.

Plenty of people would say I'm rich, but many of them would have as much or more if they saved like we did.
I'm only complaining because I made a stupid mistake in my withdrawals. Lack of attention to details. I will not have to pay IRMAA ever again.

 

[ERhoosier]

Still a lot of whining on this thread. Sheesh.

I do not consider discussing the details of IRMAA as "whining" any more than discussing details of other taxes or Government levies.



IMHO- OP & others pointing out the difficulties in IRMAA planning is not "whining". I fully understand Medicare must be funded. However I find the 'cliff' structure of IRMAA grossly inequitable and utterly indefensible in this computer age. IRMAA should be an easy-to-calculate (and revenue-neutral vs cliffs) sliding scale percentage of MAGI across the upper income scale. The present IRMAA thresholds functionally assume $1 in additional MAGI 2+ (tax) years ago make specific folks SO much better off that they should pay $THOUSAND$ more to the Feds. Absurd.

 

[audreyh1]

I'm only complaining because I made a stupid mistake in my withdrawals. Lack of attention to details. I will not have to pay IRMAA ever again.

Certainly understood. An unfortunate costly mistake.

 

[jimbee]

I do not consider discussing the details of IRMAA as "whining" any more than discussing details of other taxes or Government levies.

I don't either.

 

[LakeRat1]

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 sea-level. 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 SS resended, in our case ??

 

[Chuckanut]

However I find the 'cliff' structure of IRMAA grossly inequitable and utterly indefensible in this computer age. IRMAA should be an easy-to-calculate (and revenue-neutral vs cliffs) sliding scale percentage of MAGI across the upper income scale. The present IRMAA thresholds functionally assume $1 in additional MAGI 2+ (tax) years ago make specific folks SO much better off that they should pay $THOUSAND$ more to the Feds. Absurd.

+1
The [-]cliff[/-] step structure of IRMAA adds a lot more tension and stress to those who try to plan their retirement income and expenses. It would not be that hard to have IRMAA brackets just as we have income tax brackets and apply the rates only to the amount in each bracket. That’s why we have computers.

 

[MichaelB]

IRMAA is not a cliff, it’s a tiered structure. With a cliff, like the ACA, one additional $ of income 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.