Medicare Income-Related Monthly Adjustment

[PandaBear]

I am trying to figure out which numbers to use to figure our modified adjusted gross income and the premium we pay for being high earners.

I understand that there is a chart for each year and that the number for a certain year is based on the income tax return of 2 years earlier.

What I'm not sure of (I hope I'm asking this correctly) is what numbers to use.

This website has the amounts for 2024:
https://www.cms.gov/newsroom/fact-s...es?apcid=0063b4a3acf9c7406348c100&1699654264=

For example, beneficiaries who file a joint tax return and have a modified adjusted gross income of $206,000-258,000 pay an extra $69 per month.
Question 1: This is based on the adjusted gross income from 2022, correct?

Question 2: I want to take some distributions from our retirement accounts this year (2023). This will impact our Medicare costs in 2025, correct?

Question 3: Is there a way of knowing how much the MAGI number might change by 2025? Meaning, if I want to stay in he $69 per month increase, do I have to stay below $258,000 or will that number increase by 2025?

I hope I'm making sense. I know what I want to find out, but am not sure I can explain it well.

Thank you in advance for any help you can provide.

 

[JARON46]

The Finance Buff thinks for 2025 IRMMA (2023 Tax Year) the first tier of IRMAA will be $210,000 for joint income.

https://thefinancebuff.com/medicare-irmaa-income-brackets.html#htoc-2025-irmaa-brackets

 

[GrayHare]

IIRC, this MAGI is AGI plus nontaxable interest

 

[GrayHare]

yes, the IRMAA amount is based on the tax return from two tax years prior the IRMAA brackets tend to increase with inflation, but AFAIK theres no way to precisely calculate the brackets in advance of their announcement

 

[braumeister]

That site from the finance buff will give you the best estimate of future IRMAA brackets that anyone here knows of.

And it's not a simple dollar amount (as in $69/month), but a percentage of the basic Part B (and D if applicable) premium. That site shows it clearly.