IRMAA and Medicare for MFJ

[Trooper]

Hi,

Just turned 64 recently so starting to think about Medicare. I've already done some searching here and found the Boomer Benefits website and YouTube channel (thanks @REWahoo).

I know that AGI (possibly MAGI) plays a role in determining Medicare costs. DW won't be eligible until about 18 months after I am, so in the interim, how is MAGI determined for just me? We file MFJ, so do I just split our income in half for the period when I am eligible and DW is not?

Thanks.

[athena53]

Unfortunately if you file jointly, they look at joint income. DS was 15 years older than I and when he started on Medicare (with SS income only) we got hit with IRMAA because I was still working FT.

[Gumby]

I am hopeful that someone who really knows this will show up to comment. But, in the interim, what I believe happens is that IRMAA charges are per eligible person but the qualifying income level is your full joint AGI. So, for example, if your joint income in 2020 was $182k to $228k, then you will pay $68 extra premium per month for Part B in 2022 due to IRMAA. If both of you were Medicare eligible, then you would pay $136 per month extra premium for IRMAA.

[MichaelB]

Quote:

Originally Posted by Gumby I am hopeful that someone who really knows this will show up to comment. But, in the interim, what I believe happens is that IRMAA charges are per eligible person but the qualifying income level is your full joint AGI. So, for example, if your joint income in 2020 was $182k to $228k, then you will pay $68 extra premium per month for Part B in 2022 due to IRMAA. If both of you were Medicare eligible, then you would pay $136 per month extra premium for IRMAA.

Right. IRMAA charges are per person, the MAGI used is the joint AGI from your tax return of 2 years earlier with a few adjustments, mostly adding back in tax exempt income.

So, in this case, the adjusted gross income from the joint return is used, then modified, and if a surcharge results, is applied to only the one spouse.

[Trooper]

Thanks everyone. So since I am eligible in 2023, my 2021 MFJ MAGI will be used to determine any adjustments to the Plan B cost. Is this correct?

[Gumby]

Quote:

Originally Posted by Trooper Thanks everyone. So since I am eligible in 2023, my 2021 MFJ MAGI will be used to determine any adjustments to the Plan B cost. Is this correct?

Yes, but you won't know the threshold until the end of this year. It is inflation adjusted, so it will almost certainly be higher than the current $182k AGI. This guy has been spot on with his prior predictions https://thefinancebuff.com/medicare-...-brackets.html

[Trooper]

Great, thanks. Of course I just finished my 2021 return and my MAGI (AGI + muni bond fund interest) is slightly over the threshold for 2022 payments. Wished I had known this prior to doing my EOY Roth conversion.

I'll have a look at what The Finance Buff forecasts for the 2023 brackets.

[Dash man]

Quote:

Originally Posted by Trooper Great, thanks. Of course I just finished my 2021 return and my MAGI (AGI + muni bond fund interest) is slightly over the threshold for 2022 payments. Wished I had known this prior to doing my EOY Roth conversion. I'll have a look at what The Finance Buff forecasts for the 2023 brackets.

You should be aware that Part D prescription plans also have IRMAA, so that can add up to about another $77 per person.

[Trooper]

Can I also assume that Advantage plans (Part C) are not impacted by income? Not sure I want to go the Part C route but would be good to know.

[Dash man]

Quote:

Originally Posted by Trooper Can I also assume that Advantage plans (Part C) are not impacted by income? Not sure I want to go the Part C route but would be good to know.

You will pay IRMAA with Advantage plans too. No escape other than lower income.