My income fluctuates significantly year to year from investment distributions. How can I avoid IRMAA surcharges when I have an unusually high-income year?
Answered by 11 licensed agents
Answered by Diane Andree on April 11, 2025
Agent Licensed in NY
Answered by Clarence "Mark" Christiansen on April 22, 2025
Agent Licensed in WI, AZ, CA & 16 other states
Answered by David Bell on April 17, 2025
Agent Licensed in ID, AZ, CA & 8 other states
To help avoid surcharges in future years, my partner, Mike Secord; who is a local fiduciary, and I can help you explore investment distribution strategies tailored to keep your Medicare related income in check. We specialize in coordinating retirement income, and Medicare planning to help you keep more of what you’ve earned.
Answered by Cassandra Mancuso on May 2, 2025
Agent Licensed in ME & NH
Answered by Aaron Solomon on April 28, 2025
Broker Licensed in OH, LA & TX
Answered by Don Golding on April 14, 2025
Broker Licensed in TX, AL, AR & 5 other states
Answered by Vachik Chakhbazian on April 11, 2025
Agent Licensed in CA, AL, AR & 22 other states
(in 2025 $106,000 if you file individually or $212,000 if you’re married
and file jointly), you’ll pay an extra amount in addition to your plan
premium (sometimes called “Part D IRMAA”). You’ll also have to pay this
extra amount if you’re in a Medicare Advantage Plan that includes drug
coverage. This doesn’t affect everyone, so most people won’t pay an extra
amount.
Answered by Robert Baez on April 11, 2025
Agent Licensed in IL
Answered by Kelly Linster on April 10, 2025
Agent Licensed in ND, AZ, CO, IA & SD
1. File an appeal (Form SSA-44) – If the high income was a one-time event (like a large capital gain or distribution), you can explain it to Social Security and ask them to adjust your premiums based on your current income.
2. Strategic timing – Try to spread distributions over multiple years, or take them in years when your income is lower, if possible.
3. Work with a financial advisor – They can help you plan distributions to stay under IRMAA thresholds and explore tax-efficient strategies.
Want help with the IRMAA appeal process or figuring out how this impacts your Medicare? I’m here to help!
Answered by Ryan Ross on April 16, 2025
Broker Licensed in FL, GA, KS & 9 other states
1. **Income Management:** Plan your investment distributions carefully. If possible, spread out distributions over multiple years to avoid spiking your income in any single year.
2. **Tax-Advantaged Accounts:** Maximize contributions to tax-advantaged accounts like IRAs or 401(k)s, which can reduce your taxable income.
3. **Roth Conversions:** Consider converting traditional IRA funds to a Roth IRA in years when your income is lower, which can help manage taxable income in future years.
4. **Charitable Contributions:** Make charitable contributions, which can be deducted from your taxable income if you itemize deductions.
5. **Harvesting Losses:** Use tax-loss harvesting to offset gains with losses, potentially reducing your taxable income.
6. **Filing an Appeal:** If your income has decreased due to a life-changing event (like retirement, divorce, or loss of income-producing property), you can file an appeal with the Social Security Administration using form SSA-44 to request a reduction in your IRMAA.
7. **Consult a Professional:** Consider working with a financial advisor or tax professional who can help you strategize and manage your income effectively.
Let me know if you have any more questions!
Answered by Arsenio Sallie on April 24, 2025
Agent Licensed in PA, OH & WV
Tags: Advice for Seniors Medicare Part B Retirement
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