I retired in August 2026 and want to take a large retirement-account withdrawal this year, which would push my 2026 MAGI above the IRMAA threshold. Since my income will be lower in 2027 due to retirement, could I use the work-stoppage life-changing event to have my 2028 IRMAA based on my lower 2027 income instead?
Answered by 6 licensed agents
Your 2028 IRMAA would normally be based on your 2026 tax return. That means a large taxable retirement-account withdrawal in 2026 could cause higher Medicare Part B and Part D premiums in 2028.
But you retired in August 2026. Social Security considers stopping work a qualifying life-changing event. If your retirement causes your 2027 income to be significantly lower, you can ask Social Security to use your 2027 income instead of your 2026 income when calculating your 2028 IRMAA.
Here is what you do:
When you receive the 2028 IRMAA notice, complete Form SSA-44.
Select Work Stoppage and enter your August 2026 retirement date. Provide proof that you stopped working and give Social Security your expected 2027 MAGI and married-filing-jointly status. If your 2027 tax return is not yet filed, Social Security can use your estimate and later verify it against IRS records.
The large 2026 withdrawal still counts as 2026 income. You are not asking Social Security to remove it. You are asking them to use the more recent 2027 income because your retirement caused a significant reduction in income.
If both spouses are on Medicare and the IRMAA reduction needs to apply to both, each spouse should contact Social Security about their own IRMAA determination.
So the planning opportunity is clear: the 2026 withdrawal may raise the income reported for that year, but your August 2026 retirement can allow Social Security to use your lower 2027 income when setting 2028 Medicare premiums.
Answered by Jeremy Harkins on September 22, 2026
Broker Licensed in TN, AR, CA & 5 other states
Because Medicare has a standard two-year look-back period, your 2026 income normally dictates your 2028 premiums. Since your retirement in August 2026 constitutes an official "Work Stoppage," you can legally request that the Social Security Administration (SSA) bypass the 2026 tax year and look ahead to your lower 2027 numbers instead.
Answered by Christopher Horan on October 5, 2026
Agent Licensed in PA, DE, FL & NJ, NY, TX & VA
Keep in mind, Medicare utilizes a 2 year you look back rule. Therefore, your 2028 IRMAA is calculated off of your 2026 income.
If you are planning to retire in the next 1-2 years, it's best to consult an advisor and agent that can assist you with properly preparing for retirement. There are a lot rules that needs to be considered to minimize your taxes, impact on IRMAA, how to maximize your assets, and when to start drawing from your accounts (Social Security, 401K, IRA, etc..) and stop funding HSA accounts, and how to AVOID PENALTIES.
Answered by Steven Litzsinger on August 26, 2026
Broker Licensed in MO, AL, FL & 8 other states
Answered by Heather Majka on August 25, 2026
Broker Licensed in TN, AL, AR & 20 other states
Answered by Mark Bilgere on August 26, 2026
Broker Licensed in TX, AR, IN & LA, MN, NE & OK
Answered by Voss Speros on August 24, 2026
Broker Licensed in AZ, CA, CO & 20 other states
Tags: Advice for Seniors Coverage The Medicare System
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