IRMAA and SSA-44 form?

[albireo13]

We are just starting Medicare this year and are seeing IRMAA surcharges for Part B which are significant.
My wife just retired.

Basically, our situation is that our taxable income for the last 2 years has been exceptionally high due to lumpy IRA withdrawals.
These were done to cover one-time home improvement/repair projects. Our income moving forward will be much lower.

Someone I know suggested submitting a SSA-44 form with the IRS to seek relief from the surcharges.
Looking at the form, I don't see how it fits in. Perhaps we are SOL. : )

Has anyone else had experience with a similar situation?

Thx

 

[SecondCor521]

Not personally, but I agree with the person who suggested it to you.

You can use "work stoppage or reduction" since your wife retired. Completing the form should reduce or eliminate your IRMAA surcharges this year. Beyond those two bare basics, I'd refer you to the SSA-44 instructions (or others here who have gone through the process) for more details.

You would have to fill it out again next year if you want to reduce your 2027 IRMAA surcharges which will be based on your 2025 tax return. I believe you can use "work stoppage or reduction" as the reason again.

 

[Dash man]

It never hurts to try. All they can do is say no.

 

[engineernerd]

Watching this thread. Approaching Medicare age but not there quite yet.

Can anyone really succeed in using a single work stoppage to reduce IRMAAs in more than one year?

 

[Dash man]

Watching this thread. Approaching Medicare age but not there quite yet.

Can anyone really succeed in using a single work stoppage to reduce IRMAAs in more than one year?

That would not work.

 

[SevenUp]

Can anyone really succeed in using a single work stoppage to reduce IRMAAs in more than one year?

That would not work.

Why wouldn't it?

For example, retire at the end of 2026 and start Medicare in 2027.

The IRMAA for 2027 would default to the 2025 income, and IRMAA for 2028 would default to the 2026 income.

Instead, file one SSA-44 to have 2027 IRMAA based on expected 2027 MAGI, and another SSA-44 to have 2028 IRMAA based on actual 2027 MAGI. If 2027 MAGI is low enough, all is well.

 

[Car-Guy]

SOL <----- End of Story... But you can try...


IRMAA bit me a few times, just had to grin and bear, even as unfair as it is.. It's a wealth tax. More to come.

 

[albireo13]

I guess I will just go ahead and try it. It costs nothing to try.
Thx all. If I find out anything I will post it.

 

[MichaelB]

I guess I will just go ahead and try it. It costs nothing to try.
Thx all. If I find out anything I will post it.

There’s no cost, aside from your time, so why not. If you plan for a negative outcome you won’t be hurt when it happens and you’ll be full of joy if it does.

The part I don’t see is submitting it with your tax return, The SSA-44 goes to the SSA, not the IRS.

 

[Dash man]

Why wouldn't it?

For example, retire at the end of 2026 and start Medicare in 2027.

The IRMAA for 2027 would default to the 2025 income, and IRMAA for 2028 would default to the 2026 income.

Instead, file one SSA-44 to have 2027 IRMAA based on expected 2027 MAGI, and another SSA-44 to have 2028 IRMAA based on actual 2027 MAGI. If 2027 MAGI is low enough, all is well.

You file the SSA-44 after you receive notice for the following year’s IRMAA, which is based on the previous year’s MAGI.

 

[SevenUp]

You file the SSA-44 after you receive notice for the following year’s IRMAA, which is based on the previous year’s MAGI.

Yes. A single job loss can then be used to justify two different years of SSA-44 forms to reduce IRMAA, because otherwise it would take two years for Medicare to catch up with the reduced income.

 

[Dash man]

It doesn’t work that way. But feel free to try. It doesn’t cost you anything.

 

[Exchme]

There are only certain life changing events that qualify -marriage, divorce/annulment, death of a spouse, work stoppage or reduction, loss of income-producing property, loss of pension, or employer settlement payments.

Taking too many distributions isn't one of the LCEs, so this won't work. If OP had W-2 income last year, but not this year, a request for redetermination based on reduction in work hours would be acceptable, even if the amount was trivial and not the real cause of the extra income.

 

[SevenUp]

Yes. A single job loss can then be used to justify two different years of SSA-44 forms to reduce IRMAA, because otherwise it would take two years for Medicare to catch up with the reduced income.

It doesn’t work that way. But feel free to try. It doesn’t cost you anything.

Don't know why you claim it doesn't work that way when it has been demonstrated to work that way...?

 

[engineernerd]

After reading that bogleheads thread, I looked at the SSA-44 form and it does look like OP can apply to have their 2026 IRMAA(s) reflect their anticipated/estimated 2026 MAGI based on DW's 2026 retirement - AND apply to have their 2027 IRMAA(s) reflect their 2026 MAGI for the same reason. Good to know!