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 14 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
Strategies to Avoid IRMAA:
Proactive Financial Planning: Work with a financial planner to develop a strategy that minimizes your income in retirement, particularly during years with high investment distributions.
Charitable Giving: Make qualified charitable distributions (QCDs) or donate to a Donor Advised Fund (DAF) to reduce your Modified Adjusted Gross Income (MAGI), which is the basis for IRMAA calculations.
Roth IRA Distributions: Distributions from Roth IRAs are tax-free and don't count towards MAGI, making them a good option for withdrawals in years where income is high.
Spreading Out Withdrawals: Instead of taking a large withdrawal in one year, spread it out over multiple years to keep your income within IRMAA thresholds.
Roth Conversions: Convert traditional IRAs to Roth IRAs during years with lower income to reduce future tax liabilities and avoid counting those funds towards MAGI.
Maximizing Contributions: Maximize traditional IRA or 401(k) contributions in lower income years to reduce taxable income.
Delayed Social Security: Consider delaying your Social Security benefits to avoid the IRMAA in the years you're on Medicare, but be aware that this may increase your IRMAA in later years.
Tax-Loss Harvesting: Use tax-loss harvesting to offset any capital gains, which could reduce your overall income.
Appeal the IRMAA: If you experience a life-changing event, such as the death of a spouse or a loss of income, you can appeal the IRMAA and request a re-determination using Form SSA-44.
Answered by Fred Manas on May 15, 2025
Agent Licensed in NY, CT, DC & 7 other states
Answered by Vachik Chakhbazian on April 11, 2025
Agent Licensed in CA, AL, AR & 22 other states
Answered by Kelly Linster on April 10, 2025
Agent Licensed in ND, AZ, CO, IA & SD
(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 Gary Haft on May 26, 2025
Agent Licensed in FL, AL, DC & 9 other states
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
Answered by Adriana De la Cruz on May 23, 2025
Broker Licensed in TX, AZ, CA & NM
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
Broker Licensed in PA, OH & WV
Tags: Advice for Seniors Medicare Part B Retirement
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