Don’t Let IRMAA Get You! — SimpliFi (2024)

FAQs

Is there any way to avoid Irmaa? ›

You will use Form SSA-44 (Medicare Income Related Monthly Adjustment Amount – Life Changing Event). Complete the required information on the form and submit to a local Social Security office. Go to our website at www.medicaremindset.com/irmaa for more detailed instructions, as well as to download the appeal form.

According to the 2022 Medicare Board of Trustees Report, currently, there are over 6.8 million people in IRMAA. These people in IRMAA make up 16.63% of all eligible Medicare beneficiaries.

For 2024, if your income is greater than $103,000 and less than $397,000 the IRMAA amount is $384.30. If income is greater than or equal to $397,000 the IRMAA is $419.30.

Roth IRA withdrawals are generally tax-free. These tax-free withdrawals can enable you to avoid taking taxable withdrawals from other accounts, which, in turn, can help you avoid an increase in your IRMAA.

IRMAA is determined by income from your income tax returns two years prior. This means that for your 2024 Medicare premiums, your 2022 income tax return was used. IRMAA applicability and amounts are recalculated annually.

Yes, IRMAA is calculated every year, based on your income thresholds and tax returns. Your Medicare premiums – Parts B and D specifically – feel this impact directly.

Although nearly everyone will get free Medicare Part A, the total cost for all your Medicare will typically be between $175 and $371 per month in 2024. Some costs can be lowered or eliminated if you have a low income.

Key Takeaway: IRMAA isn't a random calculation. It's influenced by your gross income, filing status, and even dividends or capital gains you make.

How much of Social Security counts towards Irmaa? ›

The calculation for IRMAA MAGI (Modified Adjusted Gross Income) includes just the taxable portion of Social Security. This comes from the Social Security Handbook here, which states: “Modified Adjusted Gross Income is the sum of: The beneficiary's adjusted gross income (AGI), plus.

So, the answer is yes, IRMAA does include Social Security, but only the taxable portion of your benefit. If your income comes from retirement savings that are not on lines 2a and 11 of your 2022 IRS form 1040 then there is a high probability that your Social Security will not count towards IRMAA.

How many people will reach IRMAA 2025? By 2025 the federal government is projecting that 62.5 million people will be in Medicare and receiving coverage. Under federal law no person in Medicare who is receiving financial assistance in any form in terms of affordability of their premiums can be in IRMAA.

Can you get a refund on Irmaa Medicare? Yes, if you've paid more than the standard Medicare Part B premium, an IRMAA refund can be applied for.

The income used to determine your Medicare premium IRMAA is your adjusted gross income plus tax-exempt interest (such as municipal bond interest) from two years ago. Your 2024 income determines your IRMAA in 2026. Your 2023 income determines your IRMAA in 2025. Your 2022 income determines your IRMAA in 2024.

People with Medicare who earn a high income have to pay an IRMAA, an extra charge on Medicare Parts B and D. The fee kicks in if you make more than $97,000 (going up to $103,000 in 2024) or if you and your spouse collectively earn over $194,000 (going up to $206,000 in 2024).

If your income in 2021 was less than or equal to $97,000 as an individual, or less than or equal to $194,000 as a married couple, you did not pay IRMAA in 2023 and the following information does not apply to you.

If you are still working and can make tax-deductible contributions to a Traditional IRA or Traditional 401(k), TSP, 403(b), or 457 plan, you can reduce your taxable income and reduce or avoid IRMAA.

IRMAA applicability and amounts are recalculated annually. The IRMAA surcharge is added to your 2024 premiums if your 2022 income was over $103,000 (or $206,000 if you're married).