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IRMAA Logistics
Old 12-21-2019, 01:22 PM   #1
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IRMAA Logistics

DH turns 65 later in 2020. He retired in December 2019. I am still working - self-employed.

2020 IRMAA tax if based on 2018 income would put us well into IRMAA Level 2 surcharge. So, after he receives notice of the IRMAA amount, he files a Life Changing Event form documenting that he retired 12/2019. Does SS then just assume that the income from 2018 is reduced by the amount of his income earned in 2018? (He will not be drawing SS or a pension in 2020.)

I turn 65 a month after he does. Do I file a Life Changing Event form claiming income reduction because DH retired? I'm still working and earning. With my income alone, we will be in IRMAA Level 1 surcharge territory.

Do we rinse and repeat for 2021?

And, is the SS determination pretty automatic based on retirement, or is there some element of subjectivity involved? (Gee, her income is close to the IRMAA Level 2 threshold, so maybe we don't really need to make an adjustment...)
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Old 12-22-2019, 12:00 PM   #2
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Old 12-22-2019, 12:48 PM   #3
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As far as I know, which is not much.
He could file stating he retired in 2019, so instead of using the 2018 tax return, use the 2019 tax return.
However, this will only help if it is less.

They don't assume anything, they want proof of tax return income, so you will need to provide access to the 2019 return if they don't have it.
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Old 12-22-2019, 12:55 PM   #4
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Yes, if your two retirements occur in different years, and each causes a reduction in income, you would file your IRMAA request separately for each of those events.

SSA does not assume your income goes down by any particular amount, instead with your form SSA-44 filing you state what you expect your new, lower income will be.

I have some vague memory that a request for an IRMAA review must be sent by November 30, but I cannot now find that deadline in online instructions. Unsure if that's still the deadline.
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Old 12-22-2019, 12:57 PM   #5
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Quote:
Originally Posted by Potstickers View Post
DH turns 65 later in 2020. He retired in December 2019. I am still working - self-employed.

2020 IRMAA tax if based on 2018 income would put us well into IRMAA Level 2 surcharge. So, after he receives notice of the IRMAA amount, he files a Life Changing Event form documenting that he retired 12/2019. Does SS then just assume that the income from 2018 is reduced by the amount of his income earned in 2018? (He will not be drawing SS or a pension in 2020.)

I turn 65 a month after he does. Do I file a Life Changing Event form claiming income reduction because DH retired? I'm still working and earning. With my income alone, we will be in IRMAA Level 1 surcharge territory.

Do we rinse and repeat for 2021?

And, is the SS determination pretty automatic based on retirement, or is there some element of subjectivity involved? (Gee, her income is close to the IRMAA Level 2 threshold, so maybe we don't really need to make an adjustment...)
Haven't been through this but I think you are on the right track. He needs to file the form indicating that your 2020 income will be lower because he retired in December 2019 and provide any relevant documentation that you have and reduce your 2020 estimated income by the amount that he earned.

I'm not sure on the second part... whether you'll need to file a form for yourself.... I wouldn't think so if his is already adjusted but perhaps you will.
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