Appeal IRMAA or not appeal?

[averagebum]

Hello knowledgeable board members, if I may take advantage of your knowledge on this question on IRMAA.

I retired in August and turn 65 this month. Medicare kicked in on Dec 1. Due to my income from 2022 with modified adjusted gross income of $180,000, my monthly charge for Medicare parts B and D including IRMAA is $508. My 2023's income is comparable to 2022's. In 2024, my projected income will be $25,000 pension + $40,000 dividend + $45,000 part-time work, or $110,000. I am thinking about doing Roth conversion from my IRA that will bring my income to $180,000ish to take advantage of the 24% tax bracket (single). Given these, do I have any grounds to appeal my IRMAA for a lower rate?

Thank you very much for any advice you can give me. Truly appreciated.

 

[audreyh1]

Yes, you retired and no longer have wage income. That is an obvious reason to appeal and you should do so right away for 2024.

If you make some investing moves and that increases your taxable income for 2025 IRMAA that is a separate issue as well as impacting a different year.

 

[sturge]

Check out video's on medicareschool.com website.
Had a similar issue when I retired and followed their guidance for the required process to appeal.

 

[averagebum]

Thank you very much everyone! Have a wonderful day.

 

[tfudtuckerpucker]

Yup, last year I appealed and it was granted. Very easy.

 

[averagebum]

Thank you. Keeping my fingers crossed.

 

[Midpack]

I am just following along to learn. I take it the OP may be granted an appeal for 2024 (2026 IRMAA) with the (voluntary) Roth conversion on a one (year) time basis due to loss of wage income? I thought Roth conversions alone were not the basis for an IRMAA appeal - again, just trying to understand. Good luck OP.

 

[audreyh1]

I think he may be granted his appeal for relief from 2024 IRMAA based on having retired after 2022. He was working full time in 2022 which determined his 2024 IRMAA.

His MAGI in 2023 will determine the 2025 IRMAA. Different year, different issues.

Nothing about 2026.*

*Correction - he is indeed looking at 2024 income as well and whether he should increase it. And that would impact 2026 IRMAA.

But any appeal would just be to avoid IRMAA in 2024. If income in 2023 is high he’ll be right back to paying IRMAA in 2025. At least that’s how I read it.

 

[averagebum]

If my appeal for 2024 IRMAA based on the lower estimated income for 2024 is granted and my actual income for 2024 turns out to be much higher due to Roth conversion, will Medicare send me a catchup bill for a higher 2024 IRMAA that I should have paid if I didn't file the appeal?

 

[audreyh1]

If my appeal for 2024 IRMAA based on the lower estimated income for 2024 is granted and my actual income for 2024 turns out to be much higher due to Roth conversion, will Medicare send me a catchup bill for a higher 2024 IRMAA that I should have paid if I didn't file the appeal?

No. What they will do instead is set your 2026 IRMAA based on your 2024 income. They will also set your 2025 IRMAA based on your 2023 income. That’s how it works.

 

[averagebum]

Thank you!!