Broker Check

Medicare IRMAA

February 12, 2018


No not the Hurricane IRMA, (see the Extra “A”,) but rather Medicare Income Related Monthly Adjustment Amount.

IRMAA is especially costly to those retiring after a big income year. It can make your initial Medicare premiums several hundred dollars a month more than your neighbor or friends. But it can be appealed downward as income drops in early retirement. Most people have their biggest year of income the year they retire, at 65, either through a “Golden Handshake” or just grinding out time to hit goals, or selling back vacation time, etc. If you retire at 62, or 63 it will likely not affect you due to the income drop by the time you reach 65, two(2) years later, with Medicare eligibility. But should you press on until 64 or 65, and have good earnings, you’ll want to do the appeal paperwork as income drops.

IRMAA premium naturally decreases or even disappears ( leaving you with just your minimum part B monthly premium of $134 to pay, as you continue to file more modest tax returns over time. I have an expert partner I can refer you to on this matter, that specializes in this area. We are here to help. Have a great day!