IRMAA reset timing?
DW just got her IRMAA email from SSA and is mad at me for not warning her. I knew we were close to IRMAA in 2018, and as it turns out, were about $5k over, so 2020 starts the increase. SSA states that if you have a reduction in income due to a life event (ie retirement), You must contact them before Sept of that year, and that you can have the IRMAA reset.
I ASSUME (as it’s not clear), that once you can prove your actual income is lower in the year that you are paying, they will process it and delete the IRMAA penalty, rather than waiting until start of the next year. Is that correct?
2019 income is way over the IRMAA, thanks to a big bonus, and double dipping pension with severance pay. But 2020 will be under IRMAA. So once my severance stops in July of 2020, and I supply the paperwork to prove my 2020 income is lower, will the penalty remain in place for the remainder of 2020 and also 2021, because of 2019s income, or once the income is shown lower, for 2020, does that eliminate it for good for the future? I don’t ever expect to have a MAGI over $170k again.