Will I Avoid IRMAA Surcharges on Medicare Part B & Part D?
Since 2007, Medicare enrollees are required to pay “Income-Related Monthly Adjustment Amount” (IRMAA) surcharges on their Medicare Part B premiums. Since 2011, these IRMAA charges are being applied to Medicare Part D as well, which can cause premiums to surge as much as 200% depending on your income. Read below to see if you could be subjected to IRMAA surcharges.
Does your MAGI exceed $85,000 (single), $170,000 (Married) based on the prior year?
If your income does not exceed the above limits, your Part B will remain at the normal rate of $135.50 per month for 2019. If you do exceed the limits, read on.
Was there a “life changing” reduction in income?
These life changing income reductions could be a result of marriage, divorce, a spouse dying, or job loss. If your MAGI exceeds the above limits but you recently had a large reduction in income, you can request an exception by filing a Form SSA 44.
If there was no reduction in income, you will be subject to IRMAA surcharges in addition to the premium of $135.50 per month. These charges can range from $54/month to $325/month, depending on your income level. Check out this flowchart to learn more.
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Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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