The IRMAA Surcharge
Higher income in retirement can raise your Medicare premiums.
IRMAA stands for Income-Related Monthly Adjustment Amount. If your modified adjusted gross income exceeds certain thresholds, you pay higher premiums for Medicare Parts B and D. The catch: IRMAA is based on your tax return from two years ago. So a Roth conversion, a home sale, or a large withdrawal this year could raise your Medicare premiums two years from now. Knowing this in advance lets you plan around it.
From Grace
IRMAA is one of those hidden costs that surprises people. Let me explain how it works and what might trigger it for you.