|
|
01-08-2020, 07:56 PM
|
#41
|
Thinks s/he gets paid by the post
Join Date: Apr 2008
Posts: 2,006
|
Quote:
Originally Posted by pb4uski
I thought so too, but as I read the below they will adjust your income for IRMAA only if the reduction is as a result of certain events... and the qualifying events are pretty narrow.... though you may fall under the second bullet.... "stopped working or reduced your work hours".
https://www.ssa.gov/pubs/EN-05-10536.pdf
|
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.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
01-08-2020, 08:08 PM
|
#42
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
|
Quote:
Originally Posted by 1-31-18
Right. Reduced hours. And, yes, my net worth is well into eight figures. Will retire from a global law firm to sit on corporate boards and teach in a major law school.
I notice all the sniping at my income and observe that the mods must think that’s just fine, as they are absent. But if I were to respond in kind, there would be sanctions. So, best to just lurk here without saying much, as I do. Thanks for the IRMAA data.
|
I don't think it's sniping. I think it's having fun with you based on friendly envy, and not in a malicious way.
__________________
Retired since summer 1999.
|
|
|
01-08-2020, 08:12 PM
|
#43
|
gone traveling
Join Date: Apr 2011
Posts: 3,375
|
Quote:
Originally Posted by RobbieB
Gotta love rich people whining about taxes.
|
If they didn't, they'd be higher yet.
|
|
|
01-08-2020, 08:19 PM
|
#44
|
Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,353
|
SGOTI = some guy on the internet
__________________
The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
|
|
|
01-08-2020, 08:59 PM
|
#45
|
Recycles dryer sheets
Join Date: May 2015
Location: Houston
Posts: 337
|
My wife and I are relatively new to Medicare. In 2018, we made $418 over one of the IRMAA thresholds. As a result, we will pay about $2400 more in Medicare premiums during 2020.
I view it as just the breaks of the game, and it won't bankrupt us. But I kept a close eye on that MAGI number as 2019 was winding down, and didn't do as much Roth conversion as I could have.
|
|
|
01-08-2020, 09:16 PM
|
#46
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
|
Quote:
Originally Posted by 1-31-18
.... I notice all the sniping at my income and observe that the mods must think that’s just fine, as they are absent. But if I were to respond in kind, there would be sanctions. So, best to just lurk here without saying much, as I do. Thanks for the IRMAA data. ....
|
To be clear my friend, the sniping isn't at your income.... it is more at your indignation of the tax impacts of that high income.... and it is mostly in good fun... stick around... we're a pretty friendly bunch most of the time. Enjoy!
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
01-09-2020, 03:53 AM
|
#47
|
Full time employment: Posting here.
Join Date: Jun 2016
Posts: 889
|
Quote:
Originally Posted by 1-31-18
Thanks for the data. For a couple, is that 1x $491.60 per month, or 2X? Suspect it’s 2X, or basically $12K per year, in which case Medicare presents no savings whatsoever to me and DW.
We sure as hell get taxed for it, though. Wealth transfer, pure and simple.
And the $76.40 surcharge — 1x, or 2X?
If anyone has a feel for what the basic Part D coverage charge would be, to which the surcharge is added, that would be helpful, too. I understand that there are many competing plans, so it might be hard to generalize. Just looking for a general idea.
More annoying than the steep progression in these costs is the complete surprise. I will pay steep premiums next year and the year after based on what I earned last year and the year before. And I was supposed to know this? Glad I found out at this forum, so I can budget for it.
|
If your paying the $76 surcharge it means you make atleast 500 or 750k per year magi. I don’t think you really need to “budget” for it.
Even with the surcharges for high income, Medicare premiums are less than the policy would cost on the free market by a commercial profit oriented business (if they would even insure a person of a certain age to begin with). So I don’t think there is any “wealth transfer”.
|
|
|
01-09-2020, 03:58 AM
|
#48
|
Thinks s/he gets paid by the post
Join Date: Aug 2009
Posts: 1,577
|
Quote:
Originally Posted by 1-31-18
Well, I don’t know what SGOTI is, but I’m not in the business of trying to satisfy you. And if you read the thread you will see that no advice was requested, except from my ERISA partner. Here, I only asked for data — and got it.
Kinda like, “I see you are wearing a watch. What time is it?” “9:18 pm, you say? Thank you very much.”
Thanks again for the accurate data. Too busy to chase it down myself. Clued me in on an issue to run down with an expert.
Cheers.
|
With respect, I think you ought to lighten up and quit worrying about the little s$$t. Just write the check and go enjoy your retirement. It's a miniscule amount with respect to your assets. It's upsetting you way more that its relative importance [emoji3526]. Spend more time at 30000 feet rather than at the micro level.
|
|
|
01-09-2020, 04:51 AM
|
#49
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,585
|
Quote:
Originally Posted by 1-31-18
I notice all the sniping at my income and observe that the mods must think that’s just fine, as they are absent. But if I were to respond in kind, there would be sanctions. So, best to just lurk here without saying much, as I do. Thanks for the IRMAA data.
|
If you feel a specific post has violated community rules or is excessively rude you can report it by clicking on the post report icon in that post window.
|
|
|
01-09-2020, 08:18 AM
|
#50
|
Recycles dryer sheets
Join Date: Dec 2005
Posts: 317
|
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?
|
|
|
01-09-2020, 08:28 AM
|
#51
|
Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,198
|
Quote:
Originally Posted by Livefree
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.
__________________
I thought growing old would take longer.
|
|
|
01-09-2020, 08:38 AM
|
#52
|
Full time employment: Posting here.
Join Date: Jun 2016
Posts: 889
|
Quote:
Originally Posted by braumeister
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.
|
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.
|
|
|
01-09-2020, 08:42 AM
|
#53
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
|
Quote:
Originally Posted by statsman
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.
|
The thing that is really odd is that if you quit working or reduce your hours then they will adjust your income for IRMAA but if your income is high because of a gain on sale of your house and you don't have any more houses to sell then they won't adjust for that. Or if your income i h because you did some big Roth conversions and no longer have any tIRAs to convert (or don't plan to convert).
I would like to see it done like Obamacare subsidies.... based it on most recently filed tax return available but allow adjustments for documented changes in income but then true it up at tax time.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
02-27-2020, 11:04 AM
|
#54
|
Recycles dryer sheets
Join Date: Dec 2005
Posts: 317
|
Quote:
Originally Posted by Livefree
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?
|
We went to the social security office last week, and were informed that if we fill out an SSA44 Form, along with proof of the property sale, and a letter of explanation, we will NOT pay any IRMAA fees at all.
They even said we would get a rebate, if we pay a month or two, prior to the paper work being accepted..
|
|
|
Requesting a reccomendation:
04-14-2020, 06:24 AM
|
#55
|
Recycles dryer sheets
Join Date: Mar 2011
Location: North Carolina
Posts: 217
|
Requesting a reccomendation:
Quote:
Originally Posted by braumeister
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.
|
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.
2) File a SFA-44 even though my case doesn't explicitly fall into any of the boxes that can be checked and see what if anything happens.
3) Call Social Security and plead my case (I assume the offices are closed).
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.
5) Get a mail-order bride so I can file married.
TIA for any comments/suggestions.
|
|
|
04-14-2020, 07:01 AM
|
#56
|
Thinks s/he gets paid by the post
Join Date: Dec 2015
Posts: 2,232
|
Am I reading the table correctly? As a "married filing jointly", my AGI would have to be above 218K to be impacted by IRMAA?
|
|
|
04-14-2020, 07:07 AM
|
#57
|
Administrator
Join Date: Apr 2006
Posts: 22,973
|
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/11...care-costs.pdf
__________________
Living an analog life in the Digital Age.
|
|
|
04-14-2020, 07:09 AM
|
#58
|
Thinks s/he gets paid by the post
Join Date: Apr 2008
Posts: 2,006
|
Quote:
Originally Posted by prototype
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.
|
Isn't the determination made for each Medicare year, meaning for next year's Medicare payment they will use the 2019 tax filing?
|
|
|
04-14-2020, 07:12 AM
|
#59
|
Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,198
|
Quote:
Originally Posted by Gumby
|
You can easily tell whether you'll be hit by IRMAA-la-not-so-douce because you know what your prior tax returns had.
The good news is that when your AGI goes down, your surcharge will automatically be reduced or disappear as appropriate. No need to do anything for that to occur.
__________________
I thought growing old would take longer.
|
|
|
04-14-2020, 07:14 AM
|
#60
|
Recycles dryer sheets
Join Date: Mar 2011
Location: North Carolina
Posts: 217
|
Quote:
Originally Posted by statsman
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.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|