IRMAA Reconsideration Question (Fairness Act lump sum)

[RF]

So this is ahead of the curve because it won’t hit for 2 years, but I’m just looking for opinions.

My mom got a big lump sum check from SS this year as her Fairness Act back payment kicked in. So her 2027 number for IRMAA (2025 income) is going to push her into Level 2. Since it’s a one time thing, and her normal income going forward will only be at Level 1, do you think I can do the form and get her kept at Level 1 for 2027. Maybe use 2026 income as her “real” income level?

Appreciate any thoughts, as the big lump sum checks are an outlier.

 

[junkanoo]

So this is ahead of the curve because it won’t hit for 2 years, but I’m just looking for opinions.

My mom got a big lump sum check from SS this year as her Fairness Act back payment kicked in. So her 2027 number for IRMAA (2025 income) is going to push her into Level 2. Since it’s a one time thing, and her normal income going forward will only be at Level 1, do you think I can do the form and get her kept at Level 1 for 2027. Maybe use 2026 income as her “real” income level?

Appreciate any thoughts, as the big lump sum checks are an outlier.

It's a one-off out of her control and fits the very reason the form exists in the first place. However, IIRC, you only do the form after they truly push her to a higher level, not preemptively. Who knows ... as so many people fit that category, perhaps they will waive that lump-sum income for all involved. Naturally, we will only know two years from now because of the two-year look back.

 

[RF]

I looked at the form and can’t see how any of the life changing event choices fit. That’s really where I’m struggling.

Unless perhaps my dad’s death in 2023 (he was the SS recipient) can still be used to explain things.

 

[MichaelB]

It can’t hurt to try, there’s no cost, and the reason is legit.

Just to confirm, though, you are considering the retroactive amount for just the year 2024, and not any 2025 retroactive payment.

 

[RF]

She got the payment this year, though it is for all of 2024. It goes in this year’s AGI.