IRMAA...Does the Money Grab Never End?

[Gumby]

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/forums/f28/the-important-trigger-income-levels-2020-a-101090.html

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

 

[braumeister]

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.

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).

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]

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]

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]

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

Are you 65 or older?

 

[braumeister]

Are you 65 or older?

Quite a bit older.

 

[youbet]

OK, so noted then. TriCare prescription drug coverage does not trigger IRMAA. Count your blessings! We could have purchased a nice new automobile with the IRRMA dollars we're paid since turning 65 and starting Medicare(me)/Medicare Advantage (DW). And...... so be it!

 

[youbet]

https://www.early-retirement.org/forums/f28/the-important-trigger-income-levels-2020-a-101090.html

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

Thanks Gumby!

 

[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.
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.

Sent in SFA-44 with copies of 2017, 2018 and 2019 tax returns printed out from IRS account and and a brief handwritten note. Received Letter from SSA 2 weeks later that my IRMAA has been removed. ( i.e I have been "un-IRMA'ed" ) I was shocked how quickly this was turned around.

Long story short. Did #3 above first. Could not get through to the main SSA number (disconnects while waiting on hold several times, or just on hold too long if not disconnected other times,..) So I called local SSA office (near immediate answer by real person) and talked to them and explained my situation. They said do #2 (send SFA-44 and supporting Docs to local SSA office) and check the "loss of income producing" box. Maybe the same person I talked to processed my IRMAA appeal since the letter came from that SSA office.

 

[RobbieB]

I started Medicare IRMAA'd for part B and the Rx plan.

With luck I will continue to pay extra for the rest of my life -

 

[TrvlBug]

We are currently in the 3rd tier. A quick calculation of 2020 income, which will be much lower due to only taking 1/2 of RMDs for more cash in the bank as well as no cap gains due to tax loss harvesting, we should be able to avoid IRMAA in 2022 . Might even stay in the 2nd tier in 2023 depending on cap gains income.

 

[pacergal]

I started Medicare IRMAA'd for part B and the Rx plan.

With luck I will continue to pay extra for the rest of my life -

that's the way my Dad always looked at it--"If I pay more taxes, that means I made the money" He used every deduction he could and was the happiest tax payer I ever knew.
It's a good thing, no?

 

[RobbieB]

Yeah Baby!

Live large and party hearty. Blow that dough. Enrich other peoples lives. Make the world go round.