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I received my IRMAA increase, Arrgh!
11-19-2023, 11:46 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Oct 2019
Posts: 3,486
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I received my IRMAA increase, Arrgh!
In 2022 I made a big mistake and made a large withdrawal at the beginning of the years and then another one at the end of the year, not realizing I had made the first withdrawal. I had been taking next years income at the end of each year, still haven't made sense of what I did.
I just received notice from SSA about my IRMMA increase. The form says,
"If you have medicare part B, the total 2024 premium includes:
-- $174.70 for the standard Medicare premium, plus
-- any surcharges you may owe for late enrollment, plus
--$279.50 for the Medicare Part B IRMAA based on you 2022 income tax return."
Does that really mean I owe $174.70 + $279.50 = $454.20 every month for the next 12 months? 
Shoot me now!
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11-19-2023, 11:53 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Sep 2014
Location: The Great Wide Open
Posts: 3,690
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Welcome to IRMAA!
__________________
Give me Liberty or give me Death. Patrick Henry
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11-19-2023, 11:54 AM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,623
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I didn't check your math, but yeah, that's how IRMAA works.
If it helps, it does go year by year, so if your 2023 MAGI was lower, you might only pay IRMAA for 2024 and not in 2025 and beyond.
There's an IRMAA appeal process on an SSA-44 or some such form you could look into, but it doesn't sound like you qualify. You might, though.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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11-19-2023, 12:00 PM
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#4
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 24,459
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 Quote:
Originally Posted by Time2
Does that really mean I owe $174.70 + $279.50 = $454.20 every month for the next 12 months?
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Yes, that would be Tier 3, which is 2.6 times the base rate for Part B.
The details:
https://thefinancebuff.com/medicare-...-brackets.html
__________________
I thought growing old would take longer.
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11-19-2023, 12:03 PM
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#5
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,876
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It’s not what you make, it’s what you keep.
There are some gotcha’s as your income rises.
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11-19-2023, 12:03 PM
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#6
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 39,857
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So, no Plan D? That too would be subject to IRMAA
I look at IRMAA as a reduction in Medicare subsidy, which is what it really is.
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11-19-2023, 12:04 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 20,642
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And if you have a Part D plan, you get that penalty too, another $53.80/mo on top of that premium, but paid to Medicare. I’ll be thrilled when we don’t have to pay IRMAA anymore in a couple years.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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11-19-2023, 12:12 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Oct 2019
Posts: 3,486
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Quote:
Originally Posted by Midpack
And if you have a Part D plan, you get that penalty too, another $53.80/mo on top of that premium, but paid to Medicare. I’ll be thrilled when we don’t have to pay IRMAA anymore in a couple years.
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Are you pouring sand on my wound? 
Yes, I do have $53.80 to pay on my Part D.
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11-19-2023, 12:15 PM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 36,777
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DH was paying that level for 2023 based on our 2021 income where we got hit with some extra large capital gains distributions. We had made some sizeable charitable donations that year so our taxes weren’t that high, but that didn’t help our MAGI.
Fortunately for next year we expect to drop to that first level of IRMAA which will be the lowest for a while.
I’m actually planning to take some gains to increase our income this year in order to hit that first level of IRMAA for 2025. Trying to smooth this out and reduce future capital gains distributions.
But yeah, every Nov/Dec I’m working hard to manage our MAGI levels for the year after next.
__________________
Retired since summer 1999.
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11-19-2023, 12:18 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2019
Posts: 3,486
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My wife will be 65 in June 2025, she will then start Medicare, will her premium also be hit with IRMAA?
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11-19-2023, 12:20 PM
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#11
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 24,459
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Quote:
Originally Posted by Time2
My wife will be 65 in June 2025, she will then start Medicare, will her premium also be hit with IRMAA?
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Depends on your 2023 income.
__________________
I thought growing old would take longer.
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11-19-2023, 12:22 PM
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#12
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 36,777
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Quote:
Originally Posted by Time2
My wife will be 65 in June 2025, she will then start Medicare, will her premium also be hit with IRMAA?
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If your joint income this year pushes you into IRMAA for 2025 then yes, it will affect her premiums too.
The 2022 income does not affect 2025. This year 2023 does.
__________________
Retired since summer 1999.
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11-19-2023, 12:29 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: Reading, MA
Posts: 1,496
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Quote:
Originally Posted by Time2
Are you pouring sand on my wound?
Yes, I do have $53.80 to pay on my Part D. |
Salt.
He's pouring SALT on your wound...
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11-19-2023, 12:33 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Mar 2011
Location: North TX
Posts: 1,622
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Nice to learn about this prior to the need. Probably won't affect us, but we can hope.
Stinks after likely paying in the max over the years...
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11-19-2023, 12:35 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Jul 2011
Location: Reading, MA
Posts: 1,496
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For whatever little consolation it is, I've been in the middle IRMAA tiers since I started Medicare in 2015.
And I always will be, based on my projections.
I do a small Roth conversion each December now, to reduce my tax-deferred account a bit further but calculated not to get me into the next higher IRMAA tier...
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11-19-2023, 12:39 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Oct 2019
Posts: 3,486
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Sorry, made a date error in my previous post, it should have said,
My wife will be 65 in June 2024, she will then start Medicare, will her premium also be hit with IRMAA?
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11-19-2023, 12:45 PM
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#17
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 39,857
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Quote:
Originally Posted by Time2
Sorry, made a date error in my previous post, it should have said,
My wife will be 65 in June 2024, she will then start Medicare, will her premium also be hit with IRMAA?
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Yup.
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11-19-2023, 12:45 PM
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#18
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2015
Posts: 5,449
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One way to look at it, be thankful you have the income you do!
Enjoy life!
__________________
Give a Man a fish, he will eat for a day.
Teach a Man to fish, he will eat for a lifetime.
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11-19-2023, 12:51 PM
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#19
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,536
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But, but, but, you should feel good about contributing more and knowing you are helping keep the cost down for others less fortunate. I'm sure that's where that extra money is going.
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Spending my time as wisely as I can, since I don’t know what my time account balance is.
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11-19-2023, 01:11 PM
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#20
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 39,857
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Quote:
Originally Posted by Car-Guy
But, but, but, you should feel good about contributing more and knowing you are helping keep the cost down for others less fortunate. I'm sure that's where that extra money is going.
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Actually, Medicare Part B is subsidized, so the IRMAA payment means taxpayers don’t have to chip in so much subsidy and those of us that pay IRMAA are paying a greater share of our own health care premium.
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