Medicare IRMAA (Everything You Need To Know)

What is IRMAA? How Can I Avoid IRMAA? How do I appeal?
These questions and more are answered in this video.
In Medicare 2023, IRMAA is an acronym for Income Related Monthly Adjustment Amount. The IRMAA monthly charge is an extra premium charged to higher income earners for their Medicare Part B (outpatient) and Medicare Part D (prescription drug) coverage.

Medicare-IRMAA 0:00
What is IRMAA 1:30
How is IRMAA Calculated 5:22
Medicare Advantage Plans & IRMAA 7:30
How to Appeal 7:55
How to Avoid 10:05
Conclusion 12:28

How Is IRMAA Calculated?
The Centers for Medicare & Medicaid Services (CMS) and Social Security determine your eligibility for IRMAA payments by calculating your annual Modified Adjusted Gross Income (MAGI). This is simply your Adjusted Gross Income from your tax return with some deductions added back to your income. The MAGI used is as of two years ago. In other words, CMS recalculates your MAGI on a rolling two-year lookback. CMS then informs Social Security of their determination.
Some of the deductions added back to your income to determine your MAGI include:
• Untaxed Social Security payments
• IRA Contributions
• Any passive income loss
• Deductions for tuitions and fees
Your MAGI is then matched with tax filing status and income levels in the table below to determine the amount due. For 2022 the Part B premium ranges from $170.10 per month (standard) to a high of $578.30 per month for those in the highest income bracket.

Can I Avoid an IRMAA Surcharge with Medicare Advantage Plans?
The short answer is no. IRMAA charges are based on your income and will be assessed regardless of how you get your Medicare.

How To Appeal an IRMAA Surcharge
If it is determined that you should pay an IRMAA surcharge, you will receive an Initial Determination notice from Social Security. The notice will include information on how to request a new initial determination.
Social Security will consider these life changing events when re-examining your IRMAA status:
• The death of spouse
• Marriage
• Divorce or annulment
• You or your spouse stopped working or reduced the hours worked.
• Loss of pension
• Involuntary loss of income-producing property
• Receipt of settlement payment from a former or current employer due to closure or bankruptcy

How to Avoid an IRMAA Surcharge
Below are a list of ways a person can avoid the IRMAA surcharge.

1. Plan ahead. Now that you know the IRMAA calculation uses your income as of two years ago, avoid actions that will influence your income up to two years prior to starting Medicare.
2. Be careful with Roth Conversions. You can accidentally push your Part B premium from $170 a month to nearly $600 a month.
3. Required Minimum Distributions (RMDs) If an RMD will push you into a higher bracket you can use charitable contributions to lower your income. If you don’t need the income from your RMD, your philanthropy can benefit you as well as your favorite charity.
4. Consider the tax advantaged income of annuities and life insurance. The result will be a more secure income, lower taxes and possible IRMAA avoidance.

#MedicareIRMAA #IRMAA #Medicare2023 #MedigapSeminars

[RanMan]

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.

[wagsman]

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.

[testtest-dkql]

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

[BennyA.TrentSR]

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.

[lindathomas]

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

[yannip]

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?

[wendymeulemans]

Very helpful just discovered your website. I really do not want to pay a premium, but I’m very close to the limit. I think it might be best for me to take out large sums of money for all these projects that I want to get finished at least two years before I retire so the government doesn’t see all this capital gains. Is this basically what I need to be doing, I’m going to plan on retiring and 2026 in November, so what is the Irma’s for2026

[sharonmedina]

Excellent review and great advice! Thank you!

[fredost]

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

[elliotforsyth]

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

[mrjb]

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!

[MattThornton-ogxo]

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

[bobbyfrompittsburgh]

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!

[KarenHale-sk]

Very helpful, and a thoughtful presentation. thank you!

[markanthony]

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…..

[manputtyu]

does the MAGI include public pension contributions?

[jhors]

Thank you for posting this helpful video!

[FranksPH]

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

[JCC_]

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

[Ellewatch-yj]

If you sell your primary residence how long do you have to purchase another before it’s a taxable event? How can one avoid taxes on the sale of a primary residence? Thank you