Medicare IRMAA (Everything You Need To Know) 

I sold a property in 2022 and increased my income for 2022 but did not know it would affect my Medicare. I waited until I was at full retirement age to claim my Social Security so I would not be penalized for income but did not know it would affect my Medicare. You had a small section where you said to plan ahead but to someone not planning on retirement this would be unexpected. Now I got a huge increase in my Medicare payment. I could not understand what IRMMA was, so I googled it and found your channel. It helped to understand what is happening.

Thanks for this. Was very helpful. So IRMAA is whats keeping Medicare afloat.

I think that young adults in high school should learn about medicare and social security. when they start working it would be more beneficial for them for their future. as I was starting out in the work field back then, it was not clear about all these information. great video. I will start medicare late 2023.

I was caught completely by surprise when I received the IRMA letter from Social Security a few weeks ago. I had never heard of IRMA until now. After much researching I believe I have positioned myself for a reduction in Medicare Premiums for 2025. I'll just have to suck up the loss of income because of IRMA for the next twelve months. Nothing I can do about it at this point. An appeal would be frivolous. Thanks for your video, wish I had seen it way before now.

I’m an independent agent and I thank you for your RU-vid channel. You are an excellent resource and teacher.

This is THE BEST channel. I will recommend to my friends. I have a question >>> If a Medicare recipient is already on $170 per month, but sells her house and made some capital gains, what happens?

You are a wonderful resource for Medicare information. As a volunteer tax preparer for AARP I often recommend your website to clients mystified by the choices in Medicare coverage. Having viewed many of your videos I am extremely impressed by the knowledge you quietly and thoughtfully present. Great Job!

Excellent review and great advice! Thank you!

You mentioned that one way of potentially reducing the Medicare Surcharge (IRMAA) is by making charitable contributions. It was my understanding that a limitation here is that the charitable contribution can offset aa Required Minimum Distribution (RMD) coming from tax-deferred funds in an *IRA* and not from a 401Ik)/403(b)/457(b) account, You cannot reduce the Medicare Surcharge by contributing to charity directly from a 401(k)/403(b)/457(b).sccount because you cannot make a QCD from those accounts. Is my understanding incorrect?

I am turning 65 in few more months....you gave excellent information....thank you

Thanks so much for producing all of your videos. They are a fantastic resource. There is one unusual error in this one. Untaxed Social Security is NOT included in the IRMAA MAGI calculations. Please keep up the great work!

I plan to go to SS and plead insanity. I was not aware of IRMAA in 2021 and I rolled over a lump sum retirement payout from a Traditional to a Roth IRA. All years before and after 2021, we are and will continue to be well below the bottom IRMAA tier. Had I known, I could have done the Roth conversion in 2020, so that only I would be paying IRMAA on part B/D. But now, I get the privilege of paying IRMAA on both our part B/D premiums in 2023 because my wife starts her Medicare. We'll see what happens.

Started my deep dive - turning 65 in one year. These are some of the clearest videos on Medicare I have come across so far. Very useful. Thanks.

Thank you for the insight. Very troubling information about Fed decision making and the people they are to serve

Great video! As a single high income earner who just retired this month and will be going on Medicare in 2025 and not taking SSA until 2027 I know I will definitely have to appeal IRMAA as my income going to be dramatically less going forward.

Thank you for your videos. I've just passed my AHIP certification and this is my first year doing Medicare. Your videos helped me get through training. Thank you

Once again, Thank You Matthew. Hope to see from you the other changes for 2023,,👍👍

Does SSA ever make a flat out math error in calculating IRMAA? I’m newly retired federal employee and on my second bill from CMSS, my IRMAA is 100% of Part B. I was not an executive, but I get it that I fall into IRMAA territory.

IRA rollovers may help your future IRMAA. If you think that your future RMD may take you over the IRMAA threshold, you can start rolling some money now, keeping it below the threshold, to lower the future RMD.

Yes, I got caught in the IRMAA trap. Retired from a well paying job in July 2020 and got charged regular rate for Medicare for the remainder of the year. Then in January '21 they they charged me double for the months in 2020 and for January of 2021 (based on my 2019 income). Eventually I called and was told where to find form 44 and to fill it out as a "work stoppage" (there is no "I'm retired" box on the form). I called the local SS office and they said I had to FAX it, no email allowed. Eventually it got corrected, adjustments/credits made for the overcharges for 2021 and all was OK until I got a letter saying they were charging me TRIPLE for 2022 due to my 2020 income (which included severance, unused vacation, etc, so it was higher than the previous year, even having only worked 7 months). So I called SS again, and was told to submit the form 44 AGAIN. The local SS office is very nice and helpful and approved it right away and again made adjustments/credits. Hopefully this is the end of this.

Great video Matthew!

Does the amount taken from retirement accounts add to the MAGI, or just the interest earned from it?...ex. $50,000 taken from an account, is the $50,000 added to the MAGI or just the interest earned?...Thank you and thank you for the video..Thomas Danes

Thanks for this video. I’m trying to understand when I should appeal this and what proof I need. I’m on the other side of the “cliff”… I retired in January of 23, some stock options vested with that event, and we sold a home with cap gains. But this year (24) I have none of those events, and my MAGI will be significantly lower. I don’t know how to prove all of that without waiting till I file taxes next year (how do you prove a negative?). Meanwhile, in 24 I’m paying high IRMAA (almost the max) but much lower income. Doesn’t seem right but I’m not sure what to do to make the case with SocSec. Am I just stuck paying the high rates until a year or even two down the road? I can’t be the only one dealing with this… I think a lot of people are shocked to learn about this… my financial planner never mentioned.

Love your videos Matthew as my knowledge of Medicare is very limited so trying to understand and plan ahead. I must say I’m shocked at the cost for a high income person who’s income will drastically decrease at retirement and have a dependent younger wife and two children…..

You mentioned ROTH conversions. One point that makes it worth converting $ from the traditional IRA to the ROTH is that income from the ROTH is NOT part of IRMAA calculations (correct me if I am wrong please). So, if you have been moving money over and are able to create an income stream of let's say, $3-5K a month through your ROTH, that money is not part of IRMAA calculations. With the Trump tax cuts on pace to go bye-bye at end of 25', now is the time to convert. I'll be 61 soon and plan to retire in Dec 25'. Maxing out my present tax bracket (24%) this year and next with ROTH conversions and then moving less over once the 2 year look back goes into effect. Goal is to be in the first bracket of

Good clear info, love your delivery style; easy to listen to and stay engaged. One claification, how does an annuity lower your MAGI, isn't the payout still consider income by the IRS?

I turn 65 in February. My wife and I file joint tax return . Am I correct in assuming they only look at my income? We receive Mineral royalties “sometimes” and 2022 was one of those years. Will all of that be counted or just half?

Great education

How long does a Medicare beneficiary have to pay IRMAA charges as a result of a one-time spike in income ? Why is the existence of IRMAA not publicized ? What is the probability of a successful appeal ?Many beneficiaries don't know about it till 2 years or more after they get a capital gain from the sale of a house. Full disclosure please ! Medicare is extremely helpful to many beneficiaries, but it should be more open about the impact on premiums from one-time financial events that spike income. Also, it's a rare video that tells me more than I can readily read almost anywhere. Insightful content is what we need, not basic stuff about the topic that's easily found in print. This applies to the great majority of related videos. Give us inside info, not the common knowledge.

Very helpful, and a thoughtful presentation. thank you!

I thought that Social Security payments will go up if we continue to make a lot of money after full retirement age. I am working in homecare for someone who can not find anyone to replace me if I retire. With my income and social security payments I will make about $91,100 this year.

I don’t feel to guilty as my Medicare Tax’s while working 50 something years were over 100,000 dollars

As always, great information.

What's the income cap for single filer before IRMAA take into consideration .

Thank you for posting this helpful video!

I have seen that they use a two year look back at multiply sites and believe that to be the case. I do have a question about the chart shown at 6:30, it indicates that if a single person made 95,000 in year 2020 he would be subject to the IRMAA increase up to $234.10 in year 2021 that is a ONE year look back. Is that a mistake on the chart or am I missing something? Also you tell us the chart is used to determine the amount due in 2022. I do appreciate your speed of delivery of clear information, very easy for a older man like myself to understand.

This is great information

Thank you the information. One question: I am recently retired (9/31/23), age 64 turning 65 this coming Dec. I plan to sign up for Medicare starting at the beginning of 2024. I was thinking about making a substantial withdrawal from a Roth account in 2023. Would this affect my Medicare costs in any way?

Thank you, very helpful.

Always helpful. Thanks.

The videos are extremely helpful and informative. I like the way they are presented. Thank you !

This was really helpful!!! You seem to be the only one addressing this. I have a question - - - I recharacterized part of an IRA as a ROTH in 2021. Mistake - I had a MAGI of $91,600. This is $600 over the amount where an IRMAA is assessed on me as a single filer. ***But this is also $20,000 over my normal income. *** Essentially, it is the same as a windfall and I will not again have an income of that level. In 2023 I will not make nearly $91,000 nor have I in any other year. It is not fair. But I don't have a "life changing event", which seems to be the only basis of appeal? (I am unsure of this.). Can I avoid the IRMAA for 2023? What can I do? I am nowhere near having enough deductions to itemize, i.e., find items in order to re-file 2021 taxes with a slightly lower MAGI. You asked if I was surprised about Part B cost. I was surprised it was so low. Obamacare cost me much more before I was Medicare eligible. I understand the "tax burden" is shared by all, just as I shared it all my life, and that is why we pay only a percent of the cost.

TY, great video. Too late, I’ve converted to Roth n I’ll be hit with Irma when I sign up for Medicare in 2024.😢

Do assets such as rental properties or stocks impact Irma??? Yes I get RMDS have an effect

Thank you. it has been very informative.

Does Irmma increases last for ever ? ie. Sale of a home.

Great video. When does IRMMA reset? Is it calendar year or is it run a year from when you start medicare? Can you enroll at the end of your initial enrollment window in order to not have the 2 year look back work against you?

Very informative and clear video. I received a lump sum payment in 2020 that put me “over the limit” for 2022. So now, I’m going to have to pay more for Medicare and part D even though I have Medicare Advantage with prescription drug coverage…which I’m also paying for. My question(s) is, in the years before this lump sum payment, and in the years after this lump sum payment, I am nowhere near the income limit for increases to my Medicare (IRMA). This lump sum payment was not from an employer, so I’m not sure if it’s a “qualifying event” that would allow me to appeal. It was a lump sum back payment that I received after being approved for SSDI and represented several years of back payments. Also, since I did not have taxable income anywhere near the threshold for IRMA in subsequent years (2021 and 2022), do I have to continue paying this increase to my Medicare payments for the rest of my life?

Does a able account change the calculation? It is a 529A. Would withdrawals out of this account hurt a person?

Matthew - my income fluctuates yearly, will Medicare IRMMA surcharges for me automatically go up or down as my income changes. For example, my MGA was much lower in 2021 than 2020 so since I will move to a lower IRMMA bracket & a lower IRMMA surcharge, in 2023 will the government automatically reduce my IRMMA in 2023 or do I need to contact them ? If the government will automatically reduce my IRMMA surcharge in about what month in 2023 will I see this reduction ? Thank you (My wife Donna and me are happy clients of your firm )

Gibson Ramp

Hello, I am a widow , since 2006, still working and my income doesn’t reach the 103,000 but just started in middle of 2023 getting my deceased husbands social security, now if you combine the two it will be at 103,000, so will I now have to pay Irma

If one's income in the last year of employment exceeds the income limit such that an IIRMA increase is imposed two years into retirement, will that IIRMA increase be automatically reduced the FOLLOWING (third) year of retirement if, one's retirement income (via SS and/or pension funds) falls back below the triggering income threshold? Or will it only be reduced in subsequent years if the taxpayer submits the SSA-44 form requesting a reconsideration?

Thanks for this and other videos. Very helpful. Is the IRMAA surcharge automatically going to decrease as income gets lower into retirement? Is it assessed every year? Or do we have to appeal when income gets lower?

So how does income effect medicap G pricing

Good video!

Do these IRMMA tables come into play with Medicare Advantage Plans?

So irrma is based on the two rolling years back every year?

MATTHEW, does Irma include a joint tax return with a spouse? If one spouse is applying for a return to Original Med with less income does the joint tax return apply?

Thx Matthew. I still have an unanswered conundrum. The issue with planning ahead...we don't know the income cap 2 years hence. My 2025 premium is based on 2023 income but i wont know the income cap until 2025. How can I plan my 2023 income??

I need some more impormation😊

This is not everything you need to know. This does not tell you how to calculate your MAGI for medicare from your AGI....

So because I had a profitable year in 2021 I will be responsible for Irma for the rest of my life? That’s ridiculous

Beware, things aren't always the way they appear! Notice how the gentleman is very nice and says he just wants to help. He says just call if you have any questions. I called their number and said that I was interested in part D, immediately, the agent Beth became very rude. I don't think I have ever spoken to that level of a b-t-h in my life and I'm no spring chicken. She said we don't answer questions from non customers. I said the reason I am calling is to potentially be a customer. She then rudely said this conversation is over and before she hung up I said "so you don't sell Part D", she said I could self enroll but they only sell the more expensive suppliment and that she didn't make money talking to me so the conversation is over. I said "I'm going to tell people on Social media how rude you people are". She laughed and said "I don't care, go ahead" and hung up the phone on me. First of all, I didn't care if she answered my questions or not. I was trying to figure out what business they are in, in other words what they sold? Did you notice how in the videos, the gentleman constantly tries to sell you on the advantage of suppliment insurance and criticizes all other forms of insurance? That is what they sell, only suppliment insurance. As she said, if she isn't selling that, she isn't making money and if she isn't making money from you, you are as worthless to them as used toilet paper. So what does this mean to you? First of all, I wouldn't suggest trusting the bias opinions in these videos of suppliment insurance. Secondly, if only money is motivating these sales people and not even basic humanity or kindness, do you really think they are going to not put their profit over what is in your best interest? This gentleman mentions that you are not charged for their service, that the companies pay them. I use to be in a similar agency business and what he said is not exactly true. It's true that you don't have to pay his agency but the companies that use agencies have to pay these agencies tons of money and that money doesn't grow on trees. They obtain this money by charging their customers higher fees, and are usually or always going to charge you higher fees than companies that don't have this overhead. He claims he only specifically selects companies that are in your best interest because he is such a caring person. The truth is that he only uses companies that are willing to hire his agency. If you use his agency, not only are you likely getting the most expensive plans, but you are getting a small sample of the options available to you because not all companies use expensive agencies to sell their product and not all companies that do, use this particular agency. Unless you want to make what will likely be a very expensive mistake, I would suggest going to the government website and seeing ALL the availability plans and speak to the government representatives for questions instead of through an agency that wants to direct you in the path that makes them the most profit instead of what is in your best interest. She didn't have to be so very rude. This just shows the type of people you are dealing with. Her attitude opened my eyes and saved me from making a costly mistake. After I had time to think about the attitude of this person, it got me thinking about the big picture. The most predatory sales people make their money on senior citizens. Could that be the reason for her attitude? It wasn't just her rudeness, but her arrogance. I'm obviously a senior citizen like most of you that have watched these videos. We senior citizens are suckers for our impressions to the point where we emotional tend to place more focus on how we judge the messenger than the specifics and complexities of the message. I remember when my mother had just retired in her 60s and I was in my 30s. I recommended a stock broker to her. After I introduced him, he started pushing her toward risky investments that were dangerous to her but made him a lot of commission, products he knew I would never purchase. I was shocked and had multiple conversations with her about why she needed to stop dealing with him. All she said was how nice he was and kept losing her savings. Everyday he kept trying to sell her more junk and finally I had to take matters in my own hands and protect her. I called him up and said that if he contacted my mother again, I was going to file a complaint with the SCC (selling risky investments to the inexperienced), so he stopped. I then compensated her for her losses since I recommended him. I'm now a little like her like most are when they get older. These people know what works with us old folks. They have a personality on these videos that is so nice and warm natured. He seems like a saint the way he talks as such a caring soul, often commenting that he is there to inform, to help, and not make money from us. He speaks about how he does not monetize his videos and just wants to send us in the right direction and in one video he just about went into academy award winning tears about how he saved a man so much money that he can now afford to see his grand kids. This sort of tactic of "saint salesman" from heaven would make a wise younger person even more suspicious, even angry, but us senior citizens are suckers for this. This guy has sold most of us up front, that's the objective, blinding us to the vultures that are laying in wait. Just deal with neutral parties, stay away from salesmen. You can call the government representatives a thousand times and ask questions if you like, you don't need these people. There are plenty of suckers they can make money from, try not to let it be you.

Great video Matthew!!