is the penalty for just one year?
They recalculate it every year based on the most recent tax return they have. So you should get a letter late in the year telling you of any IRMAA penalty for the upcoming year based on the previous year's return.
is the penalty for just one year?
My husband does medicare counseling, and CMS does a good job of raising your premiums for IRMAA, but not so great lowering it back. Best to check each year yourself and make sure it is correct. If they don't lower it, they don't refund for the past is my understanding.They recalculate it every year based on the most recent tax return they have. So you should get a letter late in the year telling you of any IRMAA penalty for the upcoming year based on the previous year's return.
I have a suspicion that second bullet wouldn't apply to my DW and I. My DW was last to retire in June 2017. If it weren't for the sale of our house in October 2018, we would have been well under $174K MAGI in 2018, as was the case for 2017 and 2019, and will be the case for the foreseeable future.
While the move and downsizing we did as a result of the house sale would be considered a retirement move by many, I'm going to guess Medicare won't think so.
We sold a paid off rental property in 2018 when I was 63. I'm prepared to pay the extra as I know that's the year they use to calculate your income, but is the penalty for just one year? Will I be able to show that our income has dropped to lower levels again?
They recalculate it every year based on the most recent tax return they have. So you should get a letter late in the year telling you of any IRMAA penalty for the upcoming year based on the previous year's return.
Isn't the determination made for each Medicare year, meaning for next year's Medicare payment they will use the 2019 tax filing?4) Go into acceptance mode that I will be paying a $57.80/mo IRMAA penalty for the next 7 or so years even though my MAGI will (should?) remain below the ~$87K threshold.
No, the first IRMAA surcharge level is at $174,000 AGI. The surcharge steps up again at $218,000 AGI again at several higher levels. And it is based on your AGI from two years before.
https://www.medicare.gov/Pubs/pdf/11579-medicare-costs.pdf
Isn't the determination made for each Medicare year, meaning for next year's Medicare payment they will use the 2019 tax filing?
I certainly hope so, but I haven't seen that in writing in the small percentage of the hundreds pages of SSA, Mediare, CMS... rules®s that I looked at. I could have easily missed it somewhere in the fine print.
Yes, that's how it works. Look at the Medicare document here. https://www.medicare.gov/Pubs/pdf/11579-medicare-costs.pdfI certainly hope so, but I haven't seen that in writing in the small percentage of the hundreds pages of SSA, Mediare, CMS... rules®s that I looked at. I could have easily missed it somewhere in the fine print.
Just received my Medicare Premium from SSA and I have been IRMAA'ed. This was not on my radar screen two years ago when I paid cash for a home in 2018.
So my 2018 tax return caused a one-time MAGI spike to about 91K in 2018 due to the capitol gains from liquidating some assets. My 2017, 2019 (actuals),and 2020 (projected) were, and should continue be in the 75K to 80K range (until the RMD torpedo hits at 72).
1)Wait to see if my $57.80/mo IRMAA adjustment for medicare part B "poofs away" next year. ...
I just sent in a letter disputing our IRMAA charge. I gave them a YTD paycheck stub and a note from my office regarding my retirment in January. I'll keep you all posted but hopefully this will work. Since we can't meet FTF with SSA they told me to mail it in.
If it really bugs you you can just not buy Part D or switch to a Medicare Advantage plan that includes drug coverage.
https://www.mymedicarematters.org/2015/09/should-you-enroll-in-part-d-a-guide/
My husband has Kaiser Advantage. In addition the $202.40 for Part A/B, he is being billed $12.20 for part D also. I called the SS office asking why they are billing IRMAA part D when my husband did not sign up for part D. They told me that has nothing to do with it, it's strictly based on your income. So I pay this bill every month with a credit card to make myself feel a little better by getting 1.5% back.
If you retired or reduced your hours then you should get some relief.
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I was hoping that would be the case for us. But the timing of our retirement appears to be off. My DW was the last to retire in the summer of 2017, and shortly after I started my pension and a few months later DW started her SS, all in 2017.If you retired or reduced your hours then you should get some relief.
You would think that a one-time increase like prototype's that you could demonstrate a pattern for 2017, 2018 and 2019 and that 2018 was an anomaly would be considered as well, but from what I've read they don't usually adjust in such situations but it doesn't hurt to appeal.
If at the time you decided to sell those assets to raise cash to pay for the home you had known that the "tax" on those gains would be $694 more would it have changed your decision?
My husband has Kaiser Advantage. In addition the $202.40 for Part A/B, he is being billed $12.20 for part D also. I called the SS office asking why they are billing IRMAA part D when my husband did not sign up for part D. They told me that has nothing to do with it, it's strictly based on your income. So I pay this bill every month with a credit card to make myself feel a little better by getting 1.5% back.
Yep, my DW has that too. No Part D, but pays Part D IRMAA. It's the way it works.......
....Hmmm...maybe if I had changed my cost basis on the total stock fund withdrawal to something besides FIFO would have helped.