How Can I Avoid Paying Medicare Surcharges (IRMAA)?

Picture of money needed to pay Medicare IRMA

Medicare surcharges, commonly known as Income-Related Monthly Adjustment Amounts (IRMAA), impose additional fees on certain beneficiaries based on their income. Calculated using Modified Adjusted Gross Income (MAGI), IRMAA affects both Medicare Part B and Part D premiums.

IRMAA for Singles and Couples in 2023

In 2023, the standard Part B premium is $164.90, with IRMAA potentially increasing it by up to $395.60. Similarly, the standard Part D premium is $76.40, subject to an additional IRMAA of up to $76.40.

For Singles:

  • MAGI between $88,000 and $111,000: Additional $148.50 per month for Part B.
  • MAGI between $111,000 and $138,000: Additional $207.90 per month for Part B.
  • MAGI over $138,000: Additional $267.30 per month for Part B.

IRMAA for Part D premiums follows a similar structure.

For Couples:

  • MAGI between $176,000 and $222,000: Additional $148.50 per month for Part B.
  • MAGI between $222,000 and $276,000: Additional $207.90 per month for Part B.
  • MAGI over $276,000: Additional $267.30 per month for Part B.

IRMAA for Part D premiums mirrors these thresholds.

Calculating Surcharges: An Example

For instance, a single person with a $100,000 MAGI would pay an extra $148.50 monthly for Part B, in addition to the standard $164.90. Similarly, a couple with a $250,000 MAGI would face an additional $267.30 monthly for Part B, atop the standard $164.90.

Strategies to Avoid or Minimize IRMAA

  • Lower MAGI through tax deductions and credits.
  • Plan income during retirement.
  • If working, postpone Social Security benefits to reduce MAGI.

Seeking Advice

In summary, IRMAA presents a surcharge tied to Medicare Part B and Part D premiums, contingent on income and marital status. To navigate this complexity and potential financial impacts, seeking guidance from a Fee-Only professional adviser is highly recommended. Operating without commissions, Fee-Only advisers offer unbiased recommendations aligned with the client’s best interests. Their expertise proves invaluable in managing MAGI effectively, optimizing tax-related decisions, and navigating Medicare surcharges. Consulting with a Fee-Only professional adds a personalized layer to financial planning, aiding beneficiaries in minimizing IRMAA’s impact and ensuring overall financial well-being.

About This Article

This article was published and distributed by Medicare-Adviser.com, a trusted source of independent ideas. It should be viewed as general and educational information and not as financial, tax or legal advice. Individuals seeking advice tailored to their specific situation are encouraged to schedule a free consultation with a professional listed in the 1800Adviser.com directory. Both Medicare-Adviser.com and 1800Adviser.com are owned and operated by The Independent Adviser Corporation. For additional information, please refer to their Privacy Policy and Terms of Use, Legal Notices, and Disclaimer.

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