IRMAA...Does the Money Grab Never End?

[audreyh1]

Quote:

Originally Posted by prototype 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&regs that I looked at. I could have easily missed it somewhere in the fine print.

Yes, it’s recalculated every year.

[Gumby]

Quote:

Originally Posted by prototype 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&regs 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/11...care-costs.pdf
Also, starting in 2020, the IRMAA surcharge threshold levels will be adjusted for inflation each year.

[pb4uski]

Quote:

Originally Posted by prototype 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. ...

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?

[Big_Hitter]

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.

[pb4uski]

Quote:

Originally Posted by Big_Hitter 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 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.

[Bigbass]

Quote:

Originally Posted by pb4uski 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/20...art-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.

[youbet]

Quote:

Originally Posted by Bigbass 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.......

[Big_Hitter]

Quote:

Originally Posted by pb4uski If you retired or reduced your hours then you should get some relief. .

I called the local office and spoke with them last week. They seemed very reasonable and said I had the correct documentation.

DW is on medicare, I'm still on COBRA. We should have very little taxable income for the next several years. Heck I wonder if we will get EIC?

[statsman]

Quote:

Originally Posted by pb4uski 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.

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.

Our income level for 2017 was well within the bottom tier, as was 2019 and will be for several more years. 2018 had the house sale with a large, taxable capital gain (HCOL in Silicon Valley). The 2018 taxable income outside of the house sale was well within the bottom tier. The problem is we didn't technically retire in 2018. If we had, we might have had a chance, but even then, there is no guarantee.

DW wanted to appeal after our 2019 taxes had been filed to show proof of a lower income level. We're trying to decide if it is worth the time to call Medicare. We can't submit form SSA-44 because none of the options apply to us.

[prototype]

Quote:

Originally Posted by pb4uski 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?

Yes, I would have taken a less out of total index stock fund. That's where almost the extra taxable income (LTG) came from, about 30K if I remember correctly. The other funds I "hit" were total municipal bond and international stock. Those were pretty much break even (one slight loss, one light gain). Whatever it all was, it put me at 91K for 2018, so just a few $K over the ~87K limit.



So looking back I should have used a combination of using a little more cash and a little more of my municipal fund. Hmmm...maybe if I had changed my cost basis on the total stock fund withdrawal to something besides FIFO would have helped.

[audreyh1]

Yes, but those funds you took out dropped in value considerably, I would expect.

[RobbieB]

I just started Medicare and IRMAA'd right out the gate. Makes me very happy!

[pb4uski]

Quote:

Originally Posted by Bigbass 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.

Quote:

Originally Posted by youbet Yep, my DW has that too. No Part D, but pays Part D IRMAA. It's the way it works.......

Learn something new every day.

[pb4uski]

Quote:

Originally Posted by prototype ....Hmmm...maybe if I had changed my cost basis on the total stock fund withdrawal to something besides FIFO would have helped.

Yup.... you could have cherrypicked the less appreciated lots to sell.

Now you know... and that lesson only cost you $694.

[youbet]

IRMAA is just one of several thresholds that if exceeded result in penalties. Wasn't there a thread a while back where we attempted to list all of them? You know, IRRMA, ACA, Fed and state tax brackets, LTGC tax rates (20% vs 15%), etc.

It would be a treat if one of our knowledgeable folks would list these again! Or point to a link where they can be found.

[Gumby]

Quote:

Originally Posted by youbet IRMAA is just one of several thresholds that if exceeded result in penalties. Wasn't there a thread a while back where we attempted to list all of them? You know, IRRMA, ACA, Fed and state tax brackets, LTGC tax rates (20% vs 15%), etc. It would be a treat if one of our knowledgeable folks would list these again! Or point to a link where they can be found.

https://www.early-retirement.org/for...-a-101090.html

It is stickied at the top of the FIRE & Money subforum

[braumeister]

Quote:

Originally Posted by Bigbass 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.

Quote:

Originally Posted by youbet Yep, my DW has that too. No Part D, but pays Part D IRMAA. It's the way it works.......

Not in all cases. I don't have Part D and don't pay IRMAA. I believe it only applies if you have other prescription drug coverage (such as an employer plan, Medicare Advantage plan, or similar) that may even be paid for separately (by your company for example).

Quote:

If your modified adjusted gross income is above a certain amount, you may pay a Part D income-related monthly adjustment amount (Part D IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago (the most recent tax return information provided to Social Security by the IRS). You'll pay the Part D IRMAA amount in addition to your monthly plan premium, and this extra amount is paid directly to Medicare, not to your plan.

[youbet]

Quote:

Originally Posted by braumeister Not in all cases. I don't have Part D and don't pay IRMAA. I believe it only applies if you have other prescription drug coverage (such as an employer plan, Medicare Advantage plan, or similar) that may even be paid for separately (by your company for example).

You're saying you're 65 or older and have no drug coverage? Risky business IMHO.

[braumeister]

Quote:

Originally Posted by youbet You're saying you're 65 or older and have no drug coverage? Risky business IMHO.

No, I'm retired military, so mine is under Tricare For Life which is treated separately.

[youbet]

Quote:

Originally Posted by braumeister No, I'm retired military, so mine is under Tricare For Life which is treated separately.

Are you 65 or older?