What ticks me off about all of this is I have been paying into Medicare (and social security) for almost 50 years. Why should I have to pay more, now that I am about ready to start using Medicare?????
Republicans are going to privatize Medicare so your only options are private plans like Advantage from United Healthcare for example. And do your research on it bc private insurance denies denies denies. Dont take my word for it. And a lot of drs won’t take it so you have to drive far. It’s crap. Privatized Medicare will be a disaster, read all about it
Social Security is a Democrat Party product of socialism. The Social Security Administration (SSA) was established on August 14, 1935, when Democrat President Franklin D. Roosevelt signed the Social Security Act into law. Socialism's main tenant is making everybody in the system equally miserable by wealth redistribution.
Pretty dramatic example there. This person was ONLY getting $1,177/month (on the lower side) SS, and yet SOMEHOW they must have had a HUGE amount of income, from SOMEPLACE, to take IRMAA up to $559. If this fellow was married, it means his INCOME was between $386,000 and $750,000. And while NOBODY wants to pay a surcharge of any kind, realistically I can't believe with THAT income, that they would even notice it.
Yes, you are right this person has a income of about 500,000 dollars a year, and he is crying that he is paying 559 dollars a month. He can always drop medicare and part D and get a private policy.
Exactly. it'll only apply to the wealthy and the wealthy have plenty money already. It's strange how some people can be so wealthy and yet they don't understand how Social Security works. Wealthy people shouldn't get any Social Security at all!
That was nicely explained in minutes. This is great information needed for all who’s going to apply for Medicare when they turn 65. I’m turning 63 and can’t afford IRMA. This isn’t talked about much and glad it popped up. Thx
You need to look up the actual IRMAA brackets before you get too excited about this. The video is greatly exaggerated. If you're married, you don't pay $384.30 in IRMAA unless your income was from $386,000 up to $750,000. Furthermore, who has that kind of income but a social security benefit of only $1177/month? For 2025, the IRMAA is $74/month for married people with income up to $133K. That's not "nice" but it doesn't break the bank like these guys imply.
Not shedding any tears for Paul. A single filer would have had a 2022 MAGI between $193,000-$500,000 to pay $559 monthly for Part B in 2024. Married filing jointly would have had a MAGI exceeding $386,000 for the same premium. I do find it useful to know the IRMMA brackets for making decisions about how much to move out of tax deferred accounts in a given year.
It could have also been caused by a one time event like selling a house or any other taxable windfall. The key is to plan in advance for the IRMMA adjustment two years later.
This happened to a former co-worker of mine. She was 68, working part-time to keep active. Her mind is still sharp and she outworked people decades younger than her, including me. For retirement she also has social security, a pension from a former job, a 401k (that she hasn’t dipped into yet), and dividends from other investments. Her house has long ago been paid for. She’s also a widow so whatever her late husband left her as well. Her Medicare part B and D payments were over $450/month because of her income. So after working for 50+ years her reward is higher Medicare payments and higher income taxes. Basically with the extra penalties based on her income she was “forced” to re-retire again last October 2024.
But, men, you know your wives will undoubtedly outlive you so be sure and invest wisely so they have sufficient income to maintain their lifestyle and keep up with inflation. And, don't forget Uncle Sugar wants their share of the widow's mite.
I sold a rental property that I had owned for 20 years. My Medicare went from $170/month to $605/month for the next year. I had to pay IRS (quarterly) estimated taxes for the next year of $40,000 because I paid $40,000 in taxes for that gain. I got the estimated taxes back the following year. Be careful cashing out big capital gains that you have spent a lifetime acquiring. You never really understand an investment until you have bought it, held it, sold it and paid taxes on it.
It's the government way to pay government workers salaries, pensions and healthcare. You're taxed on your paycheck, then taxed on purchases, then taxed on purchases that have already been taxed, taxed on savings and taxed when you die. Get used to it as it's the American and World governments work.
This is exactly what happened to me when I turned 65 - my IRMA now exceeds my benefits so I not only receive any benefits but I have to pay additional fees- this is an absolute treasonous act towards people who have paid in for more than 40 years and you still have to pay taxes on that because it’s considered “income” even though you don’t receive benefits due to the deductions. It’s insane.
@@schl8675Thank you for explaining clearly for the general public. 👉Something is amiss when 'the general public & some financial professionals don't know' as mentioned.
My wife and I received this type of letter. If you both stopped working, you can fill out a form and submit to SSA that you've predicted this year and next years AGI to reduce / eliminate the adjustment. This is by individual basis so if you are married, the AGI can be the sum of both, yet both of the married couples each have to fill out the form. After SSA processed our forms, we each received an updated letter indicating no additional adjustments.
Did same, Income increased because of severance pay that was originally going to be paid out over 3 years, it was paid in one lump sum causing income to go deep into IRMMA. Increase was reversed after I submitted form
Keep in mind.... RMD(s) in retirement or Inherited Non Spousal Inherited Traditional IRA which the taxes need to be paid over 10yrs later in retirement is not a "life changing event". The most common is Work Stoppage or Reduction
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Members of congress get no special consideration (deal) when it comes to Medicare, etc. They pay into Social Security just like the rest of us. And they pay for medical insurance while they’re in congress receiving a salary - no special deals.
Tax planning is crucial. What wasn’t covered was the income needed to hit those trip wires. They either did excessive Roth IRA conversions, have a large pension, a nice salary, took large withdrawals from tax deferred accounts or some combo all of them. Those rates in video were for income in 2022 and married filed jointly meant they earned between $386K and $750K. It still sucks that they failed to better plan, but it’s a “nice” problem to have.
That Nice Problem usually gets reduced in retirement......Typically I see high incomes get reduced and more importantly $3-4M in investable assets which is not wealthy by any means. Most likely this couple will be paying a Medicare bill out of pocket within 8-10yrs that is inflating annually @ 10% plus per year..
@@PaulMorrison-qv8xp I dare you and Brad to run a survey of viewers asking them if they agree that "$3-4M in investable assets is not wealthy by any means".
That is a common occurrence. They only have your past income to determine your rates. When you retire, if your income will decrease, you can appeal this. You will need to calculate your estimated earnings and sign under penalties of perjury that your estimates are real. For us, this eliminated our Irma surcharges.
The appeal process involves a life changing event which the most common is Work Stoppage or Reduction... RMDs...I call it Required Maximum Distributions because nobody takes the minimum and that doesn't count as an IRMAA Appeal....FYI.
An important point that is not covered here is that Medicare part B cost the US government > $650 a month. The average person only pays $174 and change because they are subsidized by the government the difference. The more income you have the less subsidy you get. Even a person at the maximum.IRMMA is subsidized by the US government. IRMAA is not a tax, it is not a surcharge, it is just the government creating a system, where if you can afford it, you are subsidize less by the US government.
How did they get into the higher tax brackets? Withdrawals from IRAs, employment, what? Pre IIRMA, my aunt and uncle who had roughly $10,000,000, were charged the same for Medicare as everyone else. Seemed a bit unfair to me.
Government pays you 5, but takes away 8. Yeah. Got it. IRMAA, just as with WEP/GPO, is a penalty imposed on the most productive in our society. If you paid enough in and earned enough to qualify, you shouldn't be penalized for earning too much, which also means you paid the most in. If anything, those that paid the most in should be given the red carpet treatment, not the shaft.
In the example, the individual's benefit was $1177. That would indicate that he didn't pay in very much, especially considering that the IRMAA brackets would indicate that his income was between $386,000 and $750,000. Somebody has to pay for these programs and you can't get blood out of a stone. My attitude is that this person could afford it and we at least are the ones actually receiving something. If enough people don't kick in money, our kids probably won't receive anything or at the least will have to pay a lot more in social security and Medicare taxes. How much extra are YOU and your kids willing to kick in so this $386,000 guy doesn't have to pay so much on his IRMAA?
That isnt how its supposed to work. The people that are able to earn more are going to pay more to cover costs for those who cant. Its a social program. Would you have those that cant afford to pay, cover your costs so you can have the red carpet treatment ? I would hope not but I suppose there are those who have no compassion for their fellow Americans.
@@johnsimion2893 Imagine him or his wife paying for his Medicare Premiums out of pocket at some point inflating @ 7.5% Annually with IRMAA and 6-7% with the Medicare Part B & D Base Rate for the next 25-30yrs in retirement...I'm sure he has a smile on his face along with his wife most likely surviving him...
We’ve always got time to give tax breaks to billionaires but always find ways to charge the middle class and retirees more. Somebody please make that make sense. How in the hell do Americans vote for this crap?
I was surprised by IRMAA! Never heard of it before I got the letter. After doing a financial forecast for ten years it appears to be a life sentence.😮 fifty years of working, being frugal and saving and now penalized for not being poor.
I think it's important to know what his income was. If he's married, he made about $500k in income. making less than $1800 in social security doesn't make a lot of sense. I think this is a "sky is falling" video.
The only most common Life Changing Event is Work Stoppage/Reduction....Where the Govt will get you is RMDs, Dividend Income, Non Spousal Inherited IRAs, SS Income..Etc cannot be appealed as this adds to your Modified Adjusted Gross Income in retirement
For something like this too happen, a person has got to have either invested tons of money for retirement and is getting hit due to the amounts being withdrawn or they had some kind of taxable financial windfall. Most likely selling a house, but could also happen from things like a lawsuit settlement or even a really lucky lottery ticket. So in the case of the latter, best to make sure to save some of that money to cover the increased costs you'll face two years later. Fortunately, if it was a one time thing, the costs should go back down the following year.
If you are jumping that many brackets you are doing damn well compared to the vast majority as the FIRST bracket is up to $106,00 For single and $212,000 for a married couple for 2025. However, many who have pensions do get hit when RMDs kick in.
Not enough details provided. Are you getting the exact same benefits from the private insurance policy that you are getting from Medicare? Deductibles, copays, etc??
Medicare is not going away, SSA will eventually send a Medicare premium bill notice that is inflating on average by 7.5% annually along w/ a Part B & D base rates @ 6-7% annually especially if your consistently in the 3rd, 4th or 5th IRMAA Bracket.
What a joke this country's Healthcare system is. Seniors should not be paying anything for health care! We can't get universal health care for all (because big pharma, hospitals, etc will never allow it). At minimum seniors should not be paying for healthcare. The younger and able should support the old.
@@josephbyrd6642 A married couple would have made in excess of $386,000 in 2022 to hit that trip wire. Likely through some combo of Roth conversions or forced minimum withdrawals from tax deferred accounts which btw, equated to roughly $33,000 per month in income. Do they really care how much their Medicare is?
The IRS did a 2yr lookback on their Modified Adjusted Gross Income which exceeded $200k which puts them in a steeper Medicare Part B Premium Surcharge.. If this couple stays in this IRMAA Bracket in the next 8-10yrs, their Medicare Premiums/Costs will exceed their SS Net Benefit which means they will pay their Medicare Premiums out of pocket and still be taxed on their SS Gross Benefit.
Oh Yeah, its real, Irma took my part B up by $443 a month, plus the $175 base rate, plus the supplement G plan $187. My health insurance for 2025 is over $800 a month and I am in perfect health, Welcome to socialist America! Lets not forget the $240 deductible before insurance pays for anything at all. Add it all up, and this retiree pays 10K a year for nothing !!!
So the moral of the story is you’ll get hammered for being successful. This is on going as well so when you get retirement pension, Social Security and any draws from retirement investments
You'll get hammered being a working person making something of value. The politicians and elite use the tax loopholes that the average worker can't use to pay little to no taxes.
That is was exactly what happened to me,my Social Security was only $285/mo. but I was a local city government employee getting the majority of my pension is from PERS and I retired 1/28/21 and the SSA in being ran so carelessly!
Thank you for this information. I’ve been bragging that I made more last year than in any year of my life thanks to a pension, an annuity and a plain old CD. I did notice this year with my COL raise in SS that I will be making $60 less this year than last.
Plus if you are working also they continue to take Medicare tax out of your check……so it’s a triple whammy. But like you said their determinitation is based on information from two years ago. If you’ve had a change in status,like completely retiring, and your income has dropped there is a form you can fill out, obtainable online, and bring it to your local Social Security office for them to record the change..and your IRMMA will be dropped. I did that!
🎯🎯🎯 ! And, it’s a tad long- but I’m a Retired Boomer after all: 🎯🎯🎯! 🤣😂🥲!! The: 🇺🇸Working Tax 50% Paying 87.8% of All Federal Taxes , Public & Sycophantic 🐑 🐑 🐑 , Hood Rats, Self Appointed & Aggrandizing 🥷🏾🦹🏽✊🏾 🪧 👧👩🏼🦰👨🦱👩🏻🎤 DOCIAL JUSTICE WARRIORS/ Rioters/ Podcasting & Blogging/ Internet 🧌🧟♂️- Do NKT KNOW: How Historically Long - as in / from 835 BC, 1768, Tannery Hall, Chicago Politicians, etc. … Been going on behind Closed/ Secret Political Doors!!The Entitled/ Self-Voted in, RETIREMENT💵! PERKS! 24/7 ARMED Body Guards & Personal AND FAMILY- TAX PAYER FINANCED SECURITY!, Cobtinued Nepotism/ Insider Trading/ Accepting PROMISED 💵Paying Corporate REWARDING for Services Render Positions, TAX/ Gov;t Exemptions 🤬🤯😵… Far Down the Rabbit Hole it goes!!! FOR ALL: Political Parties, 🦏, 🎩👩🏽⚖️🗣️, ‘… Luke… You will never find a more Wretched Hive of Scum and Villainy…” - Obi-Wan, 1977. ‘ And ALSO, for ONLY serving ONE TERM!! Don’t even get me started on ‘ UNITED NATIONS, NYC, “ AMBASSADORS & Embassy Staff / Families: ALL Tax Exemptions, U.S.A. Lawful TAX PAYING Citizen’s Financed PERKS! IF the Cities could just collect 50% Delinquent, Never Paid/ Overlooked Chauffeured Limo / Personal & Family Auto Triple Parking/ Speeding/ DUI TICKETS??- We could Pay off our ( since Jan. 2020- til today ) from 2016 $ 18.8 TRILLION since now up 98.5% 📈💰$ 36.8 TRILLION owed National Debt ! Well … We Lawful, Working, Tax Paying U,S. Citizens ask for So Little … and boy do we get it…. God Bless, Keep the Faith & Your Powder Dry 🎼🎷 “ - The Rich Get Rich 🎶 and the Poor keep Popping Out Babies … 🎵 Ain’t We Got Fun ! “ 👴🏽NoBody🎞️s - Always 99.99% Correct, Fact Checked Accurate, Vetted ‘ Easily Internet Searched- Reserched😂! NRN, O.O.D. , Retired
My mother-in-law sold her house, and since she’s single, it boosted her IRS income for that year to the point where her SS deduction was almost four times normal. As well, she has Alzheimers, so the money she made from the sale of her house is set aside to pay for her medical expenses once we are unable to care for her full time. The amount we are told to expect - $700,000 over the course of the disease - already exceeds the profit from her house. So…a bit of irony there.
Yep, I learned an expensive lesson about IRMAA. Sold some stock towards the end of the year. If I had know about IRMAA I would have sold half the stock, waited till the next year then sell the rest. Now we track our income in order to stay below the amount that would trigger another heist by IRMAA. What a scam. From each according to what they earn to each according to their laziness.
For private reasons I had extra income in 2022 that put me in the 1st level of extra IRMA fees that were taken out each month in 2024. It was tolerable and not the end of the world. I fortunately was able to absorb the extra fees. So evaluate your situation and don't be afraid if you have to use extra IRA money for special reasons.
I would like to see break down of cost from ssa for the large deductible. Administration cost, uninsured coverage cost, hospital cost? Some one is taking the seniors for a ride of dishonesty .
What annoys me again, I live on Long Island. If I had a government job on Long Island they would give me (I believe twenty percent ) cost a living differential for a federal pay scale job because of the cost of living here. Yet IRMA doesn't allow any compensation for my higher income due to the cost of living here. When house start at 400k and property taxes of 15k to 20k a year are common. You can see how the cost of living is much higher here than the middle of america. So they would compensate you to work here ( or else no one would), but they won't consider the cost of living for Irma. this also happened with the cough money, if you're just getting by hear you are over the limit for most of america receiving that benefit. Leave it to the government to be one sided. They pay you when no one will do their jobs and work here, but then they forget about it conveniently when it comes to taking money back.
So as I understand, instead of receiving a Social Security check each month, we will get a BILL for Medicare costs, one that exceeds the size of the Social Security check. Sounds accurate, because my Social Security check was reduced when I retired by around 50%, so where I was eligible for a $750 monthly check, I only saw about $300 per month.
This is what happens when government programs are not watched carefully and adjusted to reflect current reality more often. 😕 Putting such programs on "auto-pilot" virtually guarantees that future problems WILL occur.
Yes, watch out if you rebalance a portfolio and generate "taxable income" that you don't see as income since it was used to buy stocks or bonds. Also if IRS or social security makes a mistake and misses the 2 year prior data they will use 3 year data (which for us was a much larger than usual rebalance). Then SS gives you 60 days to catch THEIR error, or the wrong irmaa deduction can't be changed. This was all complicated by the fact that SS would not accept a POA for me to act for my wife even just to ask for status of our reporting their error. (She has alzheimers.) The deduction error was for her SS, not mine even though we file a joint return. It took a face-to-face appointment with SS to fix this. Even then, SS made an error in the correction (in our favor). But SS eventually fixed the error that was in our favor - but THEY don't have to do that within 60 days. What incompetence!!
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IRMMA is a form of double taxation and a penalty for people who save for retirement. The lowest IRMA kick in income range is: Above $106,000 for single Single (MAGI), or above $212,000 Married filing Jointly (MAGI) Retired non working people who may hit these limits are for the most part (there are some exceptions): 1- Selling an asset (downsizing the primary resident to a smaller resident, or maybe moving with Children due to health issue ). The FED say gain up to 500K is exempt for taxation. The problem is that if you have lived in this house for a long time, this gain is actually 'a vapor gain' for the most. It is inflation gain .... and if I want to but same house again, I will have to pay what I sold the house for and maybe mor. I call this vapor gain because it is a reflection of the decline of the purchasing power of the dollar. But yet, the SS taxes you on something that is a vapor gain, but also what the FED said it is exempt. 2- Or withdrawing from 401k. Now paging taxes on the 401k withdrawal is fair. But why the double tax from SS? We pay FICA on the whole income before pushing % to 401k. Now, some folks may argue that but but but the employer contribution and the like. I say so what, the whole point is that savers endure the pain of saving and not enjoying / spending every dime they make and then they retire poor and begging for help. In exchange the savers would expect the SSA to give them a break and not penalize them for the saving. Again, it is just another form of double and potentially triple taxation and to discourage people from saving. Children watch what is happening to their parent and takes notes.
100% Agree w/ this comment. According to the Medicare Board of Trustees, Medicare needs to inflate by 6% or greater or becomes insolvent within 8-10yrs.
I took SS at my full retirement age. I'm continuing to work at a pay rate that causes 85% of my SS benefit to be taxed as income. I pay more than the $174 because of my income . I still have Medicare and SS withheld from my paycheck. Now I understand why I heard old people, in my long gone youth, complaining about being nickled and dimed to death. I guess it's my fault. I like my job and pay rate that keeps me from living near the poverty level. Silly me.
its actually a little worse than that... because they went over IRMAA limits the SS checks will also be taxed upto 85% .... so they really don't get much at all for a SS check.... and then the kicker... when they turn 73 the RMD kicks in and that also could push them past the IRMAA limits for the rest of their lives...
Which is total bullsh*t as SS money is already derived from taxes - it is not income. This is all just a government with a gun to your head PONZI scheme with new rules always added to keep you from getting YOUR money.
I received this letter and am in this bracket.. Worked all my life . When I retired was paying $249 dollars for UHC covered everything. What a ripoff ! Luckily am healthy. That a big chunk of money out of my pension check plus have to pay income tax. Its the old adage you pay taxes until you die and then the government still squeezes more out of you !
What is stunning is that their benefits are so low that one wonders if they made a ton of income over the past 5 years. My husband and I have been well aware of this for many years. Its one of the reasons that at Full Retirement Age I am continuing to work . My private health insurance is a lot less.
I sold a 1 acre undeveloped lake lot in 2024 for a nice profit which will push both me and my wife into one of the upper IRMAA brackets in 2 years. I have Medicare parts A, B, D & N. It’s not encouraging to hear that the surcharge will be much higher then than today’s tables. The IRMAA adjusted premiums will eat up most of our SS benefit. The current premiums are already much higher than I paid while working and having a far higher income than I now have (SS) as a retiree.
So the state decides to buy my commercial rental property through eminate domain. It took three years , with the use of an attorney, to get them to pay fair market value. Of course state and federal tax was paid, at the time of settlement. Now they are hitting me with URMAA. All of this to allow them to move telephone poles further away from the existing road. I love my gubment.
🎯🎯🎯! But, Errrr?… “ TURNING “ ? 😂😂😂 Check this: 🎯🎯🎯 ! And, it’s a tad long- but I’m a Retired Boomer after all: 🎯🎯🎯! 🤣😂🥲!! The: 🇺🇸Working Tax 50% Paying 87.8% of All Federal Taxes , Public & Sycophantic 🐑 🐑 🐑 , Hood Rats, Self Appointed & Aggrandizing 🥷🏾🦹🏽✊🏾 🪧 👧👩🏼🦰👨🦱👩🏻🎤 DOCIAL JUSTICE WARRIORS/ Rioters/ Podcasting & Blogging/ Internet 🧌🧟♂️- Do NKT KNOW: How Historically Long - as in / from 835 BC, 1768, Tannery Hall, Chicago Politicians, etc. … Been going on behind Closed/ Secret Political Doors!!The Entitled/ Self-Voted in, RETIREMENT💵! PERKS! 24/7 ARMED Body Guards & Personal AND FAMILY- TAX PAYER FINANCED SECURITY!, Cobtinued Nepotism/ Insider Trading/ Accepting PROMISED 💵Paying Corporate REWARDING for Services Render Positions, TAX/ Gov;t Exemptions 🤬🤯😵… Far Down the Rabbit Hole it goes!!! FOR ALL: Political Parties, 🦏, 🎩👩🏽⚖️🗣️, ‘… Luke… You will never find a more Wretched Hive of Scum and Villainy…” - Obi-Wan, 1977. ‘ And ALSO, for ONLY serving ONE TERM!! Don’t even get me started on ‘ UNITED NATIONS, NYC, “ AMBASSADORS & Embassy Staff / Families: ALL Tax Exemptions, U.S.A. Lawful TAX PAYING Citizen’s Financed PERKS! IF the Cities could just collect 50% Delinquent, Never Paid/ Overlooked Chauffeured Limo / Personal & Family Auto Triple Parking/ Speeding/ DUI TICKETS??- We could Pay off our ( since Jan. 2020- til today ) from 2016 $ 18.8 TRILLION since now up 98.5% 📈💰$ 36.8 TRILLION owed National Debt ! Well … We Lawful, Working, Tax Paying U,S. Citizens ask for So Little … and boy do we get it…. God Bless, Keep the Faith & Your Powder Dry 🎼🎷 “ - The Rich Get Rich 🎶 and the Poor keep Popping Out Babies … 🎵 Ain’t We Got Fun ! “ 👴🏽NoBody🎞️s - Always 99.99% Correct, Fact Checked Accurate, Vetted ‘ Easily Internet Searched- Reserched😂! NRN, O.O.D. , Retired
What if you do not use the health sysyem or use any prescription 'medications' and therefore are not a financial burden on the system? What happens in that example?
I was enroll during social security drug plan whitout my approval I have veteran hospital for my medication I don't pay .l Don't need a plan 44.99$ last year 2 $
Again people, SS is an basically an insurance plan, not a retirement benefit. They talk to you as it is but the actual written law, it is not. Its meant to guarantee the basics that incorporates your total financial situation. The more you pay in, the higher the bottom payout is, the same in any insurance plan payout. What ever body misses is it takes in consideration all your income to decide your benefit amount if you still are in need for any.
It’s almost any taxable income that goes on your tax form. The crazy part is you don’t get any additional Medicare coverage, you just pay more than other people.
How do you know if IRMAA is gonna get you? I am assuming I never made enough money to worry about this but who knows....Just retired as of 12/31/2024, sure don't want this letter...
You can always appeal to the Social Security Administration that they should use your previous year income. But be prepared to wait 2 months for the adjustment.
Get the form from online, fill it out, then personally bring it to the Social Security office..with any other required documentation just in case they want to see it, and hand them the form personally…….mine was adjusted immediately that way!
Would recommend going to the SSA Office in person...Getting harder to appeal as the Life Changing Event most common is Work Reduction/Stoppage w/ documentation. As you know, RMDs along with additional taxable income in retirement in not a life changing event.
Like my dad would say - they’re crying with egg in their beer. If they’re paying cuz irmma, they made a ton of income 2 years ago! Well over $200k 🙄 Not feeling sorry for them
I couldn't find a 2024 Medicare Part B premium of $384.30. However, if he's paying IRMAA for the first time, for the individual to be required to pay $349.40 for Medicare because of IRMAA in 2024, he would have had to have his income increase from less than $85,000 Single or less than $170,000 Married Filing Jointly in 2021 to more than $129,000 Single or more than $258,000 Married Filing Jointly in 2022, and if the increase in income is a one-off event, he can appeal the extra charge. I wish that this were a problem that I had.
In this case you would likely be able to exclude a large portion of the capital gains if you sold your primary residence. You can exclude $250,000 of profit as a single person, or $500,000 for a married couple. It probably wouldn't throw you into IRMAA. However, if you sell non primary residence, it would.
I had to pay IRMAA because of my salary before I was laid off and retired. I was making a very good income, but that stopped 2 years ago this month. I was paying twice the normal premium, until this month (supposedly) so I should no longer be affected by IRMAA. I have to wait and see if it actually happens.
IRMAA can and does apply before the age of 63. If a person goes on dialysis that person is automatically put on Medicare and the patient cannot opt out. If the patient is working, IRMAA still applies, even if the patient is paying for outside insurance. So, you can get a scenario where a person on dialysis gets no benefit from Medicare, because the benefits are actually worse than the existing health coverage, and that person has to pay $854 a month for the pleasure of having reduced benefits. Existing health insurance is not required to be primary, and hence won't pay any claims, if a person is on dialysis, so there is no way around this Medicare charge.
My wife and I did without a lot over the decades to build up a savings so that we would not have to depend on Social Security. Today we are in our 80s and income from our savings is substantially more than income from our Social Security. I'm not complaining because our current income from savings is substantially more than our expenses, which means that our savings are increasing while both of us are living in retirement. Yes, we pay a lot of federal and state taxes, but it is better to have too much income and pay too much taxes on it than to have too little income and be homeless and hungry.
be aware - income that does not affect your taxes - like tax-exempt bond income - still counts as income towards IRMAA. So your income to calculate it could be hire than your taxable income.
Is this also true past Full retirement age, and past 70yo. I was under the impression that SSI was not counted in come calculations after full retirement?
I will be retiring at age 67 in two years but after watching this I do not want Medicare. Are you required to have it when start drawing SS…. My husband is still working and he will retire for another 5 years or more and I am on his group plan from his employer. I would rather stay on this rather than this horrible Medicare
You just need to sign up for part A medicare at 65, 3 months before or after. Part A is free. Part B is where you pay. You can then sign up for Part B when you need it. If you don't sign up for Part A at 65...you pay a monthly penalty for as long as you live.
You do NOT need to sign up for part A at 65 if you are on your husband's medical plan. When your husband retires he will have the initial enrollment time to get into Medicare and you have a special enrollment time and you will need to get paperwork from his HR or the insurance company on the Medicare form which, I don't have off the top of my head, but you will then have access to a supplement plan of your choice, As will your husband. If you have an HSA you definitely don't want to be signing up for part a. You won't be able to give money any longer to the HSA. You can sign up for part a if you want, it doesn't matter, your primary insurance is your employer plan. Heart a is no charge and will never have a penalty if you don't sign up for it at 65 but have other insurance. It's part b that will have a permanent penalty if you don't sign up at 65 and if you don't have an employer plan. The employer plan needs to be larger than 20 employees. If you draw social security they will automatically put you on part a I believe but you can also let them know you don't want it it won't hurt you to have it unless you have an hsa. But you have to tell them No to part b. So before you start drawing social security you need have a conversation with them to ensure that they don't put you on part b automatically.
You are required to sign up for Medicare 3 months before your 65th birthday or you will be penalized. My husband get medical coverage for life thru his teacher's job but he still had to sign up for Medicare. He had to pay for 3 months of Medicare in advance at $185.00 a month, which was closed to over $680 out of pocket! It is crazy!!!!! And they wonder why seniors has to keep working! That can't afford not to!!!
So exactly what time period do they look at your income for this? Is it the tax year in the year that you turn 63? What if someone is born at the end of the year, so the majority of their income at age 63 would fall in the following year, but would turn 64 before the end of that year.
Yes, that’s the trick. Income increase with COLA however the Medicare and Tax brackets don’t get increased. Eventually they get all the funds back. It was a shock. Further, Part B keeps going up. In 2025 it’s $185.00
When I converted 50% of my Traditional IRA to Roth we got hit with this then it happened again when our mutual funds pushed through extra shares at the end of the year even though we never saw any cash: there are two of us on Medicare so it’s IIRMA x2
So how do you figure out what you're going to pay and if you retire and don't collect SS for a couple of yrs then you show considerably less income then you don't pay a higher Irma?
This is just means testing by another name. I will almost never be charged an IRMAA surcharge because of my lower income but I have always thought of this charge as robbery of people who have more and have always considered it unfair.
What ticks me off about all of this is I have been paying into Medicare (and social security) for almost 50 years. Why should I have to pay more, now that I am about ready to start using Medicare?????
Republicans are going to privatize Medicare so your only options are private plans like Advantage from United Healthcare for example. And do your research on it bc private insurance denies denies denies. Dont take my word for it. And a lot of drs won’t take it so you have to drive far. It’s crap. Privatized Medicare will be a disaster, read all about it
This is outrageous!
Government "efficiency"
I am right there with you. For what I pay in medicare premiums I could get a private policy that was a lot better.
Social Security is a Democrat Party product of socialism. The Social Security Administration (SSA) was established on August 14, 1935, when Democrat President Franklin D. Roosevelt signed the Social Security Act into law. Socialism's main tenant is making everybody in the system equally miserable by wealth redistribution.
Pretty dramatic example there. This person was ONLY getting $1,177/month (on the lower side) SS, and yet SOMEHOW they must have had a HUGE amount of income, from SOMEPLACE, to take IRMAA up to $559. If this fellow was married, it means his INCOME was between $386,000 and $750,000. And while NOBODY wants to pay a surcharge of any kind, realistically I can't believe with THAT income, that they would even notice it.
Yes, you are right this person has a income of about 500,000 dollars a year, and he is crying that he is paying 559 dollars a month. He can always drop medicare and part D and get a private policy.
@@stephenbay9564 My thoughts exactly,if single the threshold is $106,000 before it kicks in and his SS should be more than $1,177
Something seems off
if you have $386,000 to $750,000 income, get your own health insurance shouldn't be an issue. Rich people shouldn't try to live on the government.
Exactly. it'll only apply to the wealthy and the wealthy have plenty money already. It's strange how some people can be so wealthy and yet they don't understand how Social Security works. Wealthy people shouldn't get any Social Security at all!
Selling a house and going into an apartment will trigger IRMA
Sooooo, you are taxed until you take your very last breath. 🤬
They’re charging for air too.
And beyond
Maybe Trump will give poor people a tax cut instead of giant corporations and the wealthy. Nahhh.
😂
They tax you after death as well. It's the Estate Tax.
That was nicely explained in minutes. This is great information needed for all who’s going to apply for Medicare when they turn 65. I’m turning 63 and can’t afford IRMA. This isn’t talked about much and glad it popped up. Thx
You need to look up the actual IRMAA brackets before you get too excited about this. The video is greatly exaggerated. If you're married, you don't pay $384.30 in IRMAA unless your income was from $386,000 up to $750,000. Furthermore, who has that kind of income but a social security benefit of only $1177/month? For 2025, the IRMAA is $74/month for married people with income up to $133K. That's not "nice" but it doesn't break the bank like these guys imply.
@@johnsimion2893Agree 100%.
We call IRMAA a "shadow tax"
Not shedding any tears for Paul. A single filer would have had a 2022 MAGI between $193,000-$500,000 to pay $559 monthly for Part B in 2024. Married filing jointly would have had a MAGI exceeding $386,000 for the same premium.
I do find it useful to know the IRMMA brackets for making decisions about how much to move out of tax deferred accounts in a given year.
Absolutely! This is especially true when it's time for RMDs.
It could have also been caused by a one time event like selling a house or any other taxable windfall. The key is to plan in advance for the IRMMA adjustment two years later.
I've had to pay IRMAA Twice in the past three years. I converted my IRA to Roth, Filled joint with a MAGI of $250k and the SSA sent me that letter.
This happened to a former co-worker of mine. She was 68, working part-time to keep active. Her mind is still sharp and she outworked people decades younger than her, including me. For retirement she also has social security, a pension from a former job, a 401k (that she hasn’t dipped into yet), and dividends from other investments. Her house has long ago been paid for. She’s also a widow so whatever her late husband left her as well. Her Medicare part B and D payments were over $450/month because of her income. So after working for 50+ years her reward is higher Medicare payments and higher income taxes. Basically with the extra penalties based on her income she was “forced” to re-retire again last October 2024.
But, men, you know your wives will undoubtedly outlive you so be sure and invest wisely so they have sufficient income to maintain their lifestyle and keep up with inflation. And, don't forget Uncle Sugar wants their share of the widow's mite.
And Hunter Biden pays no income taxes for years and gets pardoned!
I sold a rental property that I had owned for 20 years. My Medicare went from $170/month to $605/month for the next year. I had to pay IRS (quarterly) estimated taxes for the next year of $40,000 because I paid $40,000 in taxes for that gain. I got the estimated taxes back the following year. Be careful cashing out big capital gains that you have spent a lifetime acquiring. You never really understand an investment until you have bought it, held it, sold it and paid taxes on it.
It's the government way to pay government workers salaries, pensions and healthcare. You're taxed on your paycheck, then taxed on purchases, then taxed on purchases that have already been taxed, taxed on savings and taxed when you die. Get used to it as it's the American and World governments work.
Would that have happened with a gain on your residence, rather than a rental?
Happened to me.
Correct...This is a Modified Adjusted Gross Income Multiplier I call it...Not a wash when it comes to IRMAA.
RETURNT O WORK IF YOU - CAN? TAKE THE EMPLOYER'S HEALTH INSURANCE IF YOU CAN AND TELL SSI TO SHOVE IT! THE MYTH OF SSI IS LONG, LONG OVER!
This is exactly what happened to me when I turned 65 - my IRMA now exceeds my benefits so I not only receive any benefits but I have to pay additional fees- this is an absolute treasonous act towards people who have paid in for more than 40 years and you still have to pay taxes on that because it’s considered “income” even though you don’t receive benefits due to the deductions. It’s insane.
Wait, what?! I'm glad you told us about IRMAA! I had no idea.
It's a real shocker, but definitely something to prepare for!
IRMAA starts at $103K for single, $206K for married, if your taxable income is less than that it does not effect you.
@@schl8675Thank you for explaining clearly for the general public.
👉Something is amiss when 'the general public & some financial professionals don't know' as mentioned.
None of us knew this loophole that’s been created
My wife and I received this type of letter. If you both stopped working, you can fill out a form and submit to SSA that you've predicted this year and next years AGI to reduce / eliminate the adjustment. This is by individual basis so if you are married, the AGI can be the sum of both, yet both of the married couples each have to fill out the form. After SSA processed our forms, we each received an updated letter indicating no additional adjustments.
thats only for one year...
So you just fill it out again the second year. Exactly what I did.
Did same, Income increased because of severance pay that was originally going to be paid out over 3 years, it was paid in one lump sum causing income to go deep into IRMMA. Increase was reversed after I submitted form
Keep in mind.... RMD(s) in retirement or Inherited Non Spousal Inherited Traditional IRA which the taxes need to be paid over 10yrs later in retirement is not a "life changing event". The most common is Work Stoppage or Reduction
@@PaulMorrison-qv8xp congratulations to anyone inheriting $4m in an IRA or having so much that their RMDs are $300k+/year.
Ouch
Box us in, kick us when we’re down. Let me guess: if you retired from congress, you’re exempt
🎯🎯🎯! 🤣😂🥲!! The: 🇺🇸Working Tax 50% Paying 87.8% of All Federal Taxes , Public & Sycophantic 🐑 🐑 🐑 , Hood Rats, Self Appointed & Aggrandizing 🥷🏾🦹🏽✊🏾 🪧 👧👩🏼🦰👨🦱👩🏻🎤 DOCIAL JUSTICE WARRIORS/ Rioters/ Podcasting & Blogging/ Internet 🧌🧟♂️- Do NKT KNOW: How Historically Long - as in / from 835 BC, 1768, Tannery Hall, Chicago Politicians, etc. … Been going on behind Closed/ Secret Political Doors!!The Entitled/ Self-Voted in, RETIREMENT💵! PERKS! 24/7 ARMED Body Guards & Personal AND FAMILY- TAX PAYER FINANCED SECURITY!, Cobtinued Nepotism/ Insider Trading/ Accepting PROMISED 💵Paying Corporate REWARDING for Services Render Positions, TAX/ Gov;t Exemptions 🤬🤯😵… Far Down the Rabbit Hole it goes!!! FOR ALL: Political Parties, 🦏, 🎩👩🏽⚖️🗣️, ‘… Luke… You will never find a more Wretched Hive of Scum and Villainy…” - Obi-Wan, 1977. ‘ And ALSO, for ONLY serving ONE TERM!! Don’t even get me started on ‘ UNITED NATIONS, NYC, “ AMBASSADORS & Embassy Staff / Families: ALL Tax Exemptions, U.S.A. Lawful TAX PAYING Citizen’s Financed PERKS! IF the Cities could just collect 50% Delinquent, Never Paid/ Overlooked Chauffeured Limo / Personal & Family Auto Triple Parking/ Speeding/ DUI TICKETS??- We could Pay off our ( since Jan. 2020- til today ) from 2016 $ 18.8 TRILLION since now up 98.5% 📈💰$ 36.8 TRILLION owed National Debt ! Well … We Lawful, Working, Tax Paying U,S. Citizens ask for So Little … and boy do we get it…. God Bless, Keep the Faith & Your Powder Dry 🎼🎷 “ - The Rich Get Rich 🎶 and the Poor keep Popping Out Babies … 🎵 Ain’t We Got Fun ! “ 👴🏽NoBody🎞️s - Always 99.99% Correct, Fact Checked Accurate, Vetted ‘ Easily Internet Searched- Reserched😂!
Members of congress get no special consideration (deal) when it comes to Medicare, etc. They pay into Social Security just like the rest of us. And they pay for medical insurance while they’re in congress receiving a salary - no special deals.
Tax planning is crucial. What wasn’t covered was the income needed to hit those trip wires. They either did excessive Roth IRA conversions, have a large pension, a nice salary, took large withdrawals from tax deferred accounts or some combo all of them. Those rates in video were for income in 2022 and married filed jointly meant they earned between $386K and $750K. It still sucks that they failed to better plan, but it’s a “nice” problem to have.
That Nice Problem usually gets reduced in retirement......Typically I see high incomes get reduced and more importantly $3-4M in investable assets which is not wealthy by any means. Most likely this couple will be paying a Medicare bill out of pocket within 8-10yrs that is inflating annually @ 10% plus per year..
@@PaulMorrison-qv8xp I dare you and Brad to run a survey of viewers asking them if they agree that "$3-4M in investable assets is not wealthy by any means".
If you are being hurt by IRMAA you are not living off of Social Security.
It would have been helpful if you had mentioned what this person was making two years prior, or given the IRMA tiers, Thanks
Google "irmaa brackets 2024" and you'll see that a married person who is paying IRMAA of $384.30 made between $386,000 and $750,000 two years prior.
The threshold for individuals income is $106,000 and above
That is a common occurrence. They only have your past income to determine your rates. When you retire, if your income will decrease, you can appeal this. You will need to calculate your estimated earnings and sign under penalties of perjury that your estimates are real. For us, this eliminated our Irma surcharges.
Thank you for sharing this, as my first thought was I would appeal as well.
In my case, my IRMAA disappeared on its own.
Where do you go to do this?
The appeal process involves a life changing event which the most common is Work Stoppage or Reduction... RMDs...I call it Required Maximum Distributions because nobody takes the minimum and that doesn't count as an IRMAA Appeal....FYI.
What is left out from this discussion is the fact that these decisions are appealable.
An important point that is not covered here is that Medicare part B cost the US government > $650 a month. The average person only pays $174 and change because they are subsidized by the government the difference. The more income you have the less subsidy you get. Even a person at the maximum.IRMMA is subsidized by the US government. IRMAA is not a tax, it is not a surcharge, it is just the government creating a system, where if you can afford it, you are subsidize less by the US government.
How did they get into the higher tax brackets? Withdrawals from IRAs, employment, what? Pre IIRMA, my aunt and uncle who had roughly $10,000,000, were charged the same for Medicare as everyone else. Seemed a bit unfair to me.
Government pays you 5, but takes away 8. Yeah. Got it. IRMAA, just as with WEP/GPO, is a penalty imposed on the most productive in our society. If you paid enough in and earned enough to qualify, you shouldn't be penalized for earning too much, which also means you paid the most in. If anything, those that paid the most in should be given the red carpet treatment, not the shaft.
In the example, the individual's benefit was $1177. That would indicate that he didn't pay in very much, especially considering that the IRMAA brackets would indicate that his income was between $386,000 and $750,000. Somebody has to pay for these programs and you can't get blood out of a stone. My attitude is that this person could afford it and we at least are the ones actually receiving something. If enough people don't kick in money, our kids probably won't receive anything or at the least will have to pay a lot more in social security and Medicare taxes. How much extra are YOU and your kids willing to kick in so this $386,000 guy doesn't have to pay so much on his IRMAA?
That isnt how its supposed to work. The people that are able to earn more are going to pay more to cover costs for those who cant. Its a social program. Would you have those that cant afford to pay, cover your costs so you can have the red carpet treatment ? I would hope not but I suppose there are those who have no compassion for their fellow Americans.
😮
@@johnsimion2893 Imagine him or his wife paying for his Medicare Premiums out of pocket at some point inflating @ 7.5% Annually with IRMAA and 6-7% with the Medicare Part B & D Base Rate for the next 25-30yrs in retirement...I'm sure he has a smile on his face along with his wife most likely surviving him...
We’ve always got time to give tax breaks to billionaires but always find ways to charge the middle class and retirees more. Somebody please make that make sense. How in the hell do Americans vote for this crap?
I was surprised by IRMAA! Never heard of it before I got the letter. After doing a financial forecast for ten years it appears to be a life sentence.😮 fifty years of working, being frugal and saving and now penalized for not being poor.
I think it's important to know what his income was. If he's married, he made about $500k in income. making less than $1800 in social security doesn't make a lot of sense. I think this is a "sky is falling" video.
You can appeal if the income was due to an extraordinary circumstance and your income drops to former levels the next year.
The only most common Life Changing Event is Work Stoppage/Reduction....Where the Govt will get you is RMDs, Dividend Income, Non Spousal Inherited IRAs, SS Income..Etc cannot be appealed as this adds to your Modified Adjusted Gross Income in retirement
@@PaulMorrison-qv8xpbut would sale of a house, your primary residence, cause an ITMAA EVEBT?
For something like this too happen, a person has got to have either invested tons of money for retirement and is getting hit due to the amounts being withdrawn or they had some kind of taxable financial windfall. Most likely selling a house, but could also happen from things like a lawsuit settlement or even a really lucky lottery ticket.
So in the case of the latter, best to make sure to save some of that money to cover the increased costs you'll face two years later. Fortunately, if it was a one time thing, the costs should go back down the following year.
If you are jumping that many brackets you are doing damn well compared to the vast majority as the FIRST bracket is up to $106,00 For single and $212,000 for a married couple for 2025.
However, many who have pensions do get hit when RMDs kick in.
With my IRMAA dues, I pay more to the govt for insurance than if I bought it privately by about $175/months
That's mind boggling. Something needs to change. People will start to pick up on this.
Not enough details provided. Are you getting the exact same benefits from the private insurance policy that you are getting from Medicare? Deductibles, copays, etc??
you maybe paying more, but we need to know if the converge and the benefits are the same or not before we can compare
Good thing I planned well enough that SS is pocket change.
That's cuz you are _special_
Medicare is not going away, SSA will eventually send a Medicare premium bill notice that is inflating on average by 7.5% annually along w/ a Part B & D base rates @ 6-7% annually especially if your consistently in the 3rd, 4th or 5th IRMAA Bracket.
You shouldn't have to pay nothing because you already paid your dues you put into the system.
People need to check out the IRMAA Bracket on their own. The Bracket increases too!
What a joke this country's Healthcare system is. Seniors should not be paying anything for health care! We can't get universal health care for all (because big pharma, hospitals, etc will never allow it). At minimum seniors should not be paying for healthcare. The younger and able should support the old.
THAT IS HORRIBLE!
so two years ago this couple made in excess of $200K, but only getting less than $2K/monthly from SS?
That didn't make sense to me either
Wow. I guess they are truly needy.
😮
@@josephbyrd6642 A married couple would have made in excess of $386,000 in 2022 to hit that trip wire. Likely through some combo of Roth conversions or forced minimum withdrawals from tax deferred accounts which btw, equated to roughly $33,000 per month in income. Do they really care how much their Medicare is?
The IRS did a 2yr lookback on their Modified Adjusted Gross Income which exceeded $200k which puts them in a steeper Medicare Part B Premium Surcharge.. If this couple stays in this IRMAA Bracket in the next 8-10yrs, their Medicare Premiums/Costs will exceed their SS Net Benefit which means they will pay their Medicare Premiums out of pocket and still be taxed on their SS Gross Benefit.
Seems like this cut off before the discussion ended?
Part 2 is coming soon. The full interview is available on my channel as well!
Oh Yeah, its real, Irma took my part B up by $443 a month, plus the $175 base rate, plus the supplement G plan $187. My health insurance for 2025 is over $800 a month and I am in perfect health,
Welcome to socialist America! Lets not forget the $240 deductible before insurance pays for anything at all. Add it all up, and this retiree pays 10K a year for nothing !!!
Can you appeal their decision? I’ve read a few comments about it.
And inflating @ 7-10% annually....You're correct sir...
@@dennistyler9852 Has to be Life Changing Event w/ documentation.. RMDs and taxable income are not life changing...
congratulations on having $160k/year to spend in retirement ($320k/year if MFJ).
NOT socialist…it is CAPITALISM and GREED at its finest!
I got that letter, but the majority of my Taxable Income Problem, is from converting my Standard IRA to a Roth IRA
Best thing is to do is to Roth conversions gradually, a little each year so as not to trigger bracket creep in any given year.
That is just nuts! Are they trying to make people poor?
It looks that way...
So the moral of the story is you’ll get hammered for being successful. This is on going as well so when you get retirement pension, Social Security and any draws from retirement investments
You'll get hammered being a working person making something of value. The politicians and elite use the tax loopholes that the average worker can't use to pay little to no taxes.
Federal Govt collected close to $24B in IRMAA Surcharges in 2024, its a revenue generator in the general account of the Federal Govt.
The Moral Of The Story is Tax Planning....Better planning of creating tax sheltered income...
Yeah pay into SS all your life and the govt penalizes you for good investment choices
That is was exactly what happened to me,my Social Security was only $285/mo. but I was a local city government employee getting the majority of my pension is from PERS and I retired 1/28/21 and the SSA in being ran so carelessly!
Thank you for this information. I’ve been bragging that I made more last year than in any year of my life thanks to a pension, an annuity and a plain old CD. I did notice this year with my COL raise in SS that I will be making $60 less this year than last.
Social Security and Medicare should be capped by amount given.
Plus if you are working also they continue to take Medicare tax out of your check……so it’s a triple whammy. But like you said their determinitation is based on information from two years ago. If you’ve had a change in status,like completely retiring, and your income has dropped there is a form you can fill out, obtainable online, and bring it to your local Social Security office for them to record the change..and your IRMMA will be dropped. I did that!
Screwed at every turn
🎯🎯🎯 ! And, it’s a tad long- but I’m a Retired Boomer after all: 🎯🎯🎯! 🤣😂🥲!! The: 🇺🇸Working Tax 50% Paying 87.8% of All Federal Taxes , Public & Sycophantic 🐑 🐑 🐑 , Hood Rats, Self Appointed & Aggrandizing 🥷🏾🦹🏽✊🏾 🪧 👧👩🏼🦰👨🦱👩🏻🎤 DOCIAL JUSTICE WARRIORS/ Rioters/ Podcasting & Blogging/ Internet 🧌🧟♂️- Do NKT KNOW: How Historically Long - as in / from 835 BC, 1768, Tannery Hall, Chicago Politicians, etc. … Been going on behind Closed/ Secret Political Doors!!The Entitled/ Self-Voted in, RETIREMENT💵! PERKS! 24/7 ARMED Body Guards & Personal AND FAMILY- TAX PAYER FINANCED SECURITY!, Cobtinued Nepotism/ Insider Trading/ Accepting PROMISED 💵Paying Corporate REWARDING for Services Render Positions, TAX/ Gov;t Exemptions 🤬🤯😵… Far Down the Rabbit Hole it goes!!! FOR ALL: Political Parties, 🦏, 🎩👩🏽⚖️🗣️, ‘… Luke… You will never find a more Wretched Hive of Scum and Villainy…” - Obi-Wan, 1977. ‘ And ALSO, for ONLY serving ONE TERM!! Don’t even get me started on ‘ UNITED NATIONS, NYC, “ AMBASSADORS & Embassy Staff / Families: ALL Tax Exemptions, U.S.A. Lawful TAX PAYING Citizen’s Financed PERKS! IF the Cities could just collect 50% Delinquent, Never Paid/ Overlooked Chauffeured Limo / Personal & Family Auto Triple Parking/ Speeding/ DUI TICKETS??- We could Pay off our ( since Jan. 2020- til today ) from 2016 $ 18.8 TRILLION since now up 98.5% 📈💰$ 36.8 TRILLION owed National Debt ! Well … We Lawful, Working, Tax Paying U,S. Citizens ask for So Little … and boy do we get it…. God Bless, Keep the Faith & Your Powder Dry 🎼🎷 “ - The Rich Get Rich 🎶 and the Poor keep Popping Out Babies … 🎵 Ain’t We Got Fun ! “ 👴🏽NoBody🎞️s - Always 99.99% Correct, Fact Checked Accurate, Vetted ‘ Easily Internet Searched- Reserched😂! NRN, O.O.D. , Retired
My mother-in-law sold her house, and since she’s single, it boosted her IRS income for that year to the point where her SS deduction was almost four times normal. As well, she has Alzheimers, so the money she made from the sale of her house is set aside to pay for her medical expenses once we are unable to care for her full time. The amount we are told to expect - $700,000 over the course of the disease - already exceeds the profit from her house. So…a bit of irony there.
Yep, I learned an expensive lesson about IRMAA. Sold some stock towards the end of the year. If I had know about IRMAA I would have sold half the stock, waited till the next year then sell the rest. Now we track our income in order to stay below the amount that would trigger another heist by IRMAA. What a scam. From each according to what they earn to each according to their laziness.
🗣️Pitiful govt communication when 'the general public & some financial professionals don't know' IRMAA as mentioned.
Our government needs to take care of Americans , not the rest of the world.
For private reasons I had extra income in 2022 that put me in the 1st level of extra IRMA fees that were taken out each month in 2024. It was tolerable and not the end of the world. I fortunately was able to absorb the extra fees. So evaluate your situation and don't be afraid if you have to use extra IRA money for special reasons.
I would like to see break down of cost from ssa for the large deductible. Administration cost, uninsured coverage cost, hospital cost? Some one is taking the seniors for a ride of dishonesty .
What annoys me again, I live on Long Island. If I had a government job on Long Island they would give me (I believe twenty percent ) cost a living differential for a federal pay scale job because of the cost of living here. Yet IRMA doesn't allow any compensation for my higher income due to the cost of living here. When house start at 400k and property taxes of 15k to 20k a year are common. You can see how the cost of living is much higher here than the middle of america. So they would compensate you to work here ( or else no one would), but they won't consider the cost of living for Irma. this also happened with the cough money, if you're just getting by hear you are over the limit for most of america receiving that benefit. Leave it to the government to be one sided. They pay you when no one will do their jobs and work here, but then they forget about it conveniently when it comes to taking money back.
So as I understand, instead of receiving a Social Security check each month, we will get a BILL for Medicare costs, one that exceeds the size of the Social Security check. Sounds accurate, because my Social Security check was reduced when I retired by around 50%, so where I was eligible for a $750 monthly check, I only saw about $300 per month.
This is what happens when government programs are not watched carefully and adjusted to reflect current reality more often. 😕
Putting such programs on "auto-pilot" virtually guarantees that future problems WILL occur.
It's the coercion between the Government and the healthcare system. It's not about you or your health. It's about protecting the healthcare industry.
This video is the first I have ever heard of IRMAA, what a coitus job by government on responsible people.
Yes, watch out if you rebalance a portfolio and generate "taxable income" that you don't see as income since it was used to buy stocks or bonds. Also if IRS or social security makes a mistake and misses the 2 year prior data they will use 3 year data (which for us was a much larger than usual rebalance). Then SS gives you 60 days to catch THEIR error, or the wrong irmaa deduction can't be changed. This was all complicated by the fact that SS would not accept a POA for me to act for my wife even just to ask for status of our reporting their error. (She has alzheimers.) The deduction error was for her SS, not mine even though we file a joint return. It took a face-to-face appointment with SS to fix this. Even then, SS made an error in the correction (in our favor). But SS eventually fixed the error that was in our favor - but THEY don't have to do that within 60 days. What incompetence!!
🎯🎯🎯! And NEVER FORGET to plan ahead & Protect yourself/ Families/ Friends from the Still Current/ ALL INCLUSIVE 50% DEATH TAX!! Joe & the HARRIS PRESIDENTIAL ADMINISTRATION wants to 📈 it to 60%! Before he leaves! (Did Joe REALKY “ Pardon “ Hunter?”) and: 🎯🎯🎯 ! And, it’s a tad long- but I’m a Retired Boomer after all: 🎯🎯🎯! 🤣😂🥲!! The: 🇺🇸Working Tax 50% Paying 87.8% of All Federal Taxes , Public & Sycophantic 🐑 🐑 🐑 , Hood Rats, Self Appointed & Aggrandizing 🥷🏾🦹🏽✊🏾 🪧 👧👩🏼🦰👨🦱👩🏻🎤 DOCIAL JUSTICE WARRIORS/ Rioters/ Podcasting & Blogging/ Internet 🧌🧟♂️- Do NKT KNOW: How Historically Long - as in / from 835 BC, 1768, Tannery Hall, Chicago Politicians, etc. … Been going on behind Closed/ Secret Political Doors!!The Entitled/ Self-Voted in, RETIREMENT💵! PERKS! 24/7 ARMED Body Guards & Personal AND FAMILY- TAX PAYER FINANCED SECURITY!, Cobtinued Nepotism/ Insider Trading/ Accepting PROMISED 💵Paying Corporate REWARDING for Services Render Positions, TAX/ Gov;t Exemptions 🤬🤯😵… Far Down the Rabbit Hole it goes!!! FOR ALL: Political Parties, 🦏, 🎩👩🏽⚖️🗣️, ‘… Luke… You will never find a more Wretched Hive of Scum and Villainy…” - Obi-Wan, 1977. ‘ And ALSO, for ONLY serving ONE TERM!! Don’t even get me started on ‘ UNITED NATIONS, NYC, “ AMBASSADORS & Embassy Staff / Families: ALL Tax Exemptions, U.S.A. Lawful TAX PAYING Citizen’s Financed PERKS! IF the Cities could just collect 50% Delinquent, Never Paid/ Overlooked Chauffeured Limo / Personal & Family Auto Triple Parking/ Speeding/ DUI TICKETS??- We could Pay off our ( since Jan. 2020- til today ) from 2016 $ 18.8 TRILLION since now up 98.5% 📈💰$ 36.8 TRILLION owed National Debt ! Well … We Lawful, Working, Tax Paying U,S. Citizens ask for So Little … and boy do we get it…. God Bless, Keep the Faith & Your Powder Dry 🎼🎷 “ - The Rich Get Rich 🎶 and the Poor keep Popping Out Babies … 🎵 Ain’t We Got Fun ! “ 👴🏽NoBody🎞️s - Always 99.99% Correct, Fact Checked Accurate, Vetted ‘ Easily Internet Searched- Reserched😂! NRN, O.O.D. , Retired
IRMMA is a form of double taxation and a penalty for people who save for retirement.
The lowest IRMA kick in income range is:
Above $106,000 for single Single (MAGI), or above $212,000 Married filing Jointly (MAGI)
Retired non working people who may hit these limits are for the most part (there are some exceptions):
1- Selling an asset (downsizing the primary resident to a smaller resident, or maybe moving with Children due to health issue ). The FED say gain up to 500K is exempt for taxation. The problem is that if you have lived in this house for a long time, this gain is actually 'a vapor gain' for the most. It is inflation gain .... and if I want to but same house again, I will have to pay what I sold the house for and maybe mor. I call this vapor gain because it is a reflection of the decline of the purchasing power of the dollar. But yet, the SS taxes you on something that is a vapor gain, but also what the FED said it is exempt.
2- Or withdrawing from 401k. Now paging taxes on the 401k withdrawal is fair. But why the double tax from SS? We pay FICA on the whole income before pushing % to 401k. Now, some folks may argue that but but but the employer contribution and the like. I say so what, the whole point is that savers endure the pain of saving and not enjoying / spending every dime they make and then they retire poor and begging for help. In exchange the savers would expect the SSA to give them a break and not penalize them for the saving.
Again, it is just another form of double and potentially triple taxation and to discourage people from saving. Children watch what is happening to their parent and takes notes.
Yes….i got hit by an IRMAA in a year where I’d made about $106,200……..ouch!
100% Agree w/ this comment. According to the Medicare Board of Trustees, Medicare needs to inflate by 6% or greater or becomes insolvent within 8-10yrs.
Quit work 2 years prior to retirment
Also when selling primary residence the cut off is 500k for a couple, after that you pay more for a year IRMAA.
I took SS at my full retirement age. I'm continuing to work at a pay rate that causes 85% of my SS benefit to be taxed as income. I pay more than the $174 because of my income . I still have Medicare and SS withheld from my paycheck. Now I understand why I heard old people, in my long gone youth, complaining about being nickled and dimed to death. I guess it's my fault. I like my job and pay rate that keeps me from living near the poverty level. Silly me.
We are experiencing the slow, steady, stealthy advance of socialism.
its actually a little worse than that... because they went over IRMAA limits the SS checks will also be taxed upto 85% .... so they really don't get much at all for a SS check.... and then the kicker... when they turn 73 the RMD kicks in and that also could push them past the IRMAA limits for the rest of their lives...
Which is total bullsh*t as SS money is already derived from taxes - it is not income. This is all just a government with a gun to your head PONZI scheme with new rules always added to keep you from getting YOUR money.
Very Good......Its going to get worse and possible very little to zero SS Net Benefit for both spouses by Age 73...
I received this letter and am in this bracket.. Worked all my life . When I retired was paying $249 dollars for UHC covered everything. What a ripoff ! Luckily am healthy. That a big chunk of money out of my pension check plus have to pay income tax. Its the old adage you pay taxes until you die and then the government still squeezes more out of you !
I got a similar letter. My Medicare premium doubled.
@@fredrauch1815 appeal it. We did, the letter lets you know the form to complete.
What is stunning is that their benefits are so low that one wonders if they made a ton of income over the past 5 years. My husband and I have been well aware of this for many years. Its one of the reasons that at Full Retirement Age I am continuing to work . My private health insurance is a lot less.
I sold a 1 acre undeveloped lake lot in 2024 for a nice profit which will push both me and my wife into one of the upper IRMAA brackets in 2 years. I have Medicare parts A, B, D & N. It’s not encouraging to hear that the surcharge will be much higher then than today’s tables. The IRMAA adjusted premiums will eat up most of our SS benefit. The current premiums are already much higher than I paid while working and having a far higher income than I now have (SS) as a retiree.
“N” is your. Medicare Supplement PLAN.
The point is what? Is there a call for action here? Is there something WE can do about this? Or BOHICA?
So the state decides to buy my commercial rental property through eminate domain. It took three years , with the use of an attorney, to get them to pay fair market value. Of course state and federal tax was paid, at the time of settlement. Now they are hitting me with URMAA. All of this to allow them to move telephone poles further away from the existing road. I love my gubment.
We need to march on Washington!!!! Our government is turning criminal!!!!!!!
Turning?
🎯🎯🎯! But, Errrr?… “ TURNING “ ? 😂😂😂 Check this: 🎯🎯🎯 ! And, it’s a tad long- but I’m a Retired Boomer after all: 🎯🎯🎯! 🤣😂🥲!! The: 🇺🇸Working Tax 50% Paying 87.8% of All Federal Taxes , Public & Sycophantic 🐑 🐑 🐑 , Hood Rats, Self Appointed & Aggrandizing 🥷🏾🦹🏽✊🏾 🪧 👧👩🏼🦰👨🦱👩🏻🎤 DOCIAL JUSTICE WARRIORS/ Rioters/ Podcasting & Blogging/ Internet 🧌🧟♂️- Do NKT KNOW: How Historically Long - as in / from 835 BC, 1768, Tannery Hall, Chicago Politicians, etc. … Been going on behind Closed/ Secret Political Doors!!The Entitled/ Self-Voted in, RETIREMENT💵! PERKS! 24/7 ARMED Body Guards & Personal AND FAMILY- TAX PAYER FINANCED SECURITY!, Cobtinued Nepotism/ Insider Trading/ Accepting PROMISED 💵Paying Corporate REWARDING for Services Render Positions, TAX/ Gov;t Exemptions 🤬🤯😵… Far Down the Rabbit Hole it goes!!! FOR ALL: Political Parties, 🦏, 🎩👩🏽⚖️🗣️, ‘… Luke… You will never find a more Wretched Hive of Scum and Villainy…” - Obi-Wan, 1977. ‘ And ALSO, for ONLY serving ONE TERM!! Don’t even get me started on ‘ UNITED NATIONS, NYC, “ AMBASSADORS & Embassy Staff / Families: ALL Tax Exemptions, U.S.A. Lawful TAX PAYING Citizen’s Financed PERKS! IF the Cities could just collect 50% Delinquent, Never Paid/ Overlooked Chauffeured Limo / Personal & Family Auto Triple Parking/ Speeding/ DUI TICKETS??- We could Pay off our ( since Jan. 2020- til today ) from 2016 $ 18.8 TRILLION since now up 98.5% 📈💰$ 36.8 TRILLION owed National Debt ! Well … We Lawful, Working, Tax Paying U,S. Citizens ask for So Little … and boy do we get it…. God Bless, Keep the Faith & Your Powder Dry 🎼🎷 “ - The Rich Get Rich 🎶 and the Poor keep Popping Out Babies … 🎵 Ain’t We Got Fun ! “ 👴🏽NoBody🎞️s - Always 99.99% Correct, Fact Checked Accurate, Vetted ‘ Easily Internet Searched- Reserched😂! NRN, O.O.D. , Retired
What if you do not use the health sysyem or use any prescription 'medications' and therefore are not a financial burden on the system?
What happens in that example?
So what is the money threshold they exceeded to get penalized?
I was enroll during social security drug plan whitout my approval I have veteran hospital for my medication I don't pay .l Don't need a plan 44.99$ last year 2 $
We working citizens most likely would not have to pay this if there wasn’t so much corruption in politics
Again people, SS is an basically an insurance plan, not a retirement benefit. They talk to you as it is but the actual written law, it is not. Its meant to guarantee the basics that incorporates your total financial situation. The more you pay in, the higher the bottom payout is, the same in any insurance plan payout. What ever body misses is it takes in consideration all your income to decide your benefit amount if you still are in need for any.
A silly question, but how do you define income? Is it based on earnings along, or do they include cashing in bonds, stocks, IRA's, 401k, etc.
Adjusted Gross Income, line 11 on the 1040.
Actually it's modified gross income, you add tax free interest back onto line 11.
It’s almost any taxable income that goes on your tax form. The crazy part is you don’t get any additional Medicare coverage, you just pay more than other people.
A 9% increase of the $74.30 base rate is a whopping $6.69 per month. You light the flaming torches and I'll gather the pitchforks.
How do you know if IRMAA is gonna get you? I am assuming I never made enough money to worry about this but who knows....Just retired as of 12/31/2024, sure don't want this letter...
You can always appeal to the Social Security Administration that they should use your previous year income. But be prepared to wait 2 months for the adjustment.
Get the form from online, fill it out, then personally bring it to the Social Security office..with any other required documentation just in case they want to see it, and hand them the form personally…….mine was adjusted immediately that way!
Would recommend going to the SSA Office in person...Getting harder to appeal as the Life Changing Event most common is Work Reduction/Stoppage w/ documentation. As you know, RMDs along with additional taxable income in retirement in not a life changing event.
Like my dad would say - they’re crying with egg in their beer. If they’re paying cuz irmma, they made a ton of income 2 years ago! Well over $200k 🙄 Not feeling sorry for them
I couldn't find a 2024 Medicare Part B premium of $384.30. However, if he's paying IRMAA for the first time, for the individual to be required to pay $349.40 for Medicare because of IRMAA in 2024, he would have had to have his income increase from less than $85,000 Single or less than $170,000 Married Filing Jointly in 2021 to more than $129,000 Single or more than $258,000 Married Filing Jointly in 2022, and if the increase in income is a one-off event, he can appeal the extra charge. I wish that this were a problem that I had.
What happens if you sold your house and made $500,000 that year?
In this case you would likely be able to exclude a large portion of the capital gains if you sold your primary residence. You can exclude $250,000 of profit as a single person, or $500,000 for a married couple. It probably wouldn't throw you into IRMAA. However, if you sell non primary residence, it would.
How can the IRS do this after the IRS haven’t been paying their taxes
I had to pay IRMAA because of my salary before I was laid off and retired. I was making a very good income, but that stopped 2 years ago this month. I was paying twice the normal premium, until this month (supposedly) so I should no longer be affected by IRMAA. I have to wait and see if it actually happens.
Work hard, safe and the government will take it for those who didn’t
IRMAA can and does apply before the age of 63. If a person goes on dialysis that person is automatically put on Medicare and the patient cannot opt out. If the patient is working, IRMAA still applies, even if the patient is paying for outside insurance.
So, you can get a scenario where a person on dialysis gets no benefit from Medicare, because the benefits are actually worse than the existing health coverage, and that person has to pay $854 a month for the pleasure of having reduced benefits.
Existing health insurance is not required to be primary, and hence won't pay any claims, if a person is on dialysis, so there is no way around this Medicare charge.
My wife and I did without a lot over the decades to build up a savings so that we would not have to depend on Social Security. Today we are in our 80s and income from our savings is substantially more than income from our Social Security. I'm not complaining because our current income from savings is substantially more than our expenses, which means that our savings are increasing while both of us are living in retirement. Yes, we pay a lot of federal and state taxes, but it is better to have too much income and pay too much taxes on it than to have too little income and be homeless and hungry.
How much other income do they have?
You can complete a change in employment status form an base it on you current and future income
Every time we get the micro increase we get a larger Medicare increase so we always actually get a decrease in our income.
be aware - income that does not affect your taxes - like tax-exempt bond income - still counts as income towards IRMAA. So your income to calculate it could be hire than your taxable income.
You pay MORE but you get the same BENEFIT.
What if I don’t want nothing but my check? I don’t wanna sign up for Medicaid or any of that?
Step 1, learn the difference between Medicare and Medicaid.
Is this also true past Full retirement age, and past 70yo. I was under the impression that SSI was not counted in come calculations after full retirement?
Income besides SS up to the $23k limit. The inflated 9 and 6% annually? Please clarify.
So, we are forced to participate in Medicare, and are forced to pay for it as well.
I will be retiring at age 67 in two years but after watching this I do not want Medicare. Are you required to have it when start drawing SS…. My husband is still working and he will retire for another 5 years or more and I am on his group plan from his employer. I would rather stay on this rather than this horrible Medicare
You just need to sign up for part A medicare at 65, 3 months before or after. Part A is free. Part B is where you pay. You can then sign up for Part B when you need it. If you don't sign up for Part A at 65...you pay a monthly penalty for as long as you live.
You do NOT need to sign up for part A at 65 if you are on your husband's medical plan. When your husband retires he will have the initial enrollment time to get into Medicare and you have a special enrollment time and you will need to get paperwork from his HR or the insurance company on the Medicare form which, I don't have off the top of my head, but you will then have access to a supplement plan of your choice, As will your husband. If you have an HSA you definitely don't want to be signing up for part a. You won't be able to give money any longer to the HSA. You can sign up for part a if you want, it doesn't matter, your primary insurance is your employer plan. Heart a is no charge and will never have a penalty if you don't sign up for it at 65 but have other insurance. It's part b that will have a permanent penalty if you don't sign up at 65 and if you don't have an employer plan. The employer plan needs to be larger than 20 employees. If you draw social security they will automatically put you on part a I believe but you can also let them know you don't want it it won't hurt you to have it unless you have an hsa. But you have to tell them No to part b. So before you start drawing social security you need have a conversation with them to ensure that they don't put you on part b automatically.
You are required to sign up for Medicare 3 months before your 65th birthday or you will be penalized. My husband get medical coverage for life thru his teacher's job but he still had to sign up for Medicare. He had to pay for 3 months of Medicare in advance at $185.00 a month, which was closed to over $680 out of pocket! It is crazy!!!!! And they wonder why seniors has to keep working! That can't afford not to!!!
So exactly what time period do they look at your income for this? Is it the tax year in the year that you turn 63? What if someone is born at the end of the year, so the majority of their income at age 63 would fall in the following year, but would turn 64 before the end of that year.
Yes, that’s the trick. Income increase with COLA however the Medicare and Tax brackets don’t get increased. Eventually they get all the funds back. It was a shock. Further, Part B keeps going up. In 2025 it’s $185.00
When I converted 50% of my Traditional IRA to Roth we got hit with this then it happened again when our mutual funds pushed through extra shares at the end of the year even though we never saw any cash: there are two of us on Medicare so it’s IIRMA x2
So how do you figure out what you're going to pay and if you retire and don't collect SS for a couple of yrs then you show considerably less income then you don't pay a higher Irma?
To be getting that smaller amount in their SS, they didn't pay much into it.
This is just means testing by another name.
I will almost never be charged an IRMAA surcharge because of my lower income but I have always thought of this charge as robbery of people who have more and have always considered it unfair.