You are right. It got me looking...
Thank goodness I only have to deal with one!
Fully agree on both points. That's the way I've been calculating mine for years. Sort of game now - how close can I get... Getting pretty close this year. Maybe within 2k "but that's still guessing" on what the 2026 IRMAA numbers will be. (so unfair for us tax payers to have to guess but I'm getting good at it)
Interesting. Under for ACA MAGI, it says Investment Income, and then when you hover over that it ways include all investment income, including non-taxable. I still assume that any gains within 401k's, IRA's etc are not included as income, just withdrawals? I know this wasn't about ACA but it caught my eye.
Right
Tax-exempt interest in taxable accounts such as muni-bond interest is included in MAGI.
It's absurd there are 10 different MAGI calcs, and absurd we can't have IRMAA thresholds in the year we're dialing in MAGI.
I don't see any way to avoid the IRMAA issue. The thresholds are inflation adjusted (as they should be, IMO) and they can't do the calculation for 2025 until the August 2024 CPI is reported in early September, so that they can start deducting from the Social Security checks for December which are paid in January of 2025. At the same time, the latest income information they have for people (to see whether they are over the new threshold amount) is what was in the tax returns filed in April 2024 (i.e. - 2023 MAGI).It's absurd there are 10 different MAGI calcs, and absurd we can't have IRMAA thresholds in the year we're dialing in MAGI.
No other country has a tax code so complex the average citizen has no chance of understanding it...
It contributes to your IRMAA MAGI.
No. It's included in the MAGI calculation, but you're still only taxed on 85% or less of your Soc Sec payments.
For all we know, he made it.
Then you have no Social Security income.
You just pay it separately instead of having it deducted from your SS benefit. They have a system called Easy Pay that is simple to set up. The premium is deducted monthly from your bank account. You can also pay directly online.
I’m paying Medicare premiums now and I have not started SS yet. I send payments to CMS Medicare monthly from my HSA account via scheduled bill pay, and I will do so until I start SS. These premiums include whatever I owe for IRMAA each year.
