What is the IRMAA (Income-Related Monthly Adjustment Amount)?
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Weekend Reading
For many retirees, Medicare provides critical healthcare support—but what you may not realize is that your income can significantly affect what you actually pay.
READ THE ARTICLEThat’s where the Income-Related Monthly Adjustment Amount (IRMAA) comes in: an additional surcharge on your Medicare Part B and Part D premiums if your income exceeds certain thresholds.
Key Takeaways:
📌 Income Triggers Matter: IRMAA is based on your Modified Adjusted Gross Income (MAGI), which includes income from IRAs, pensions, capital gains, and even tax-exempt municipal bonds
📌 It’s Not Forever: Your IRMAA can change each year with your income—and you can appeal if you’ve had a life-changing event like retirement or loss of a spouse
📌 Strategic Planning Helps: Proactive tax strategies, like Roth IRA conversions completed before enrolling in Medicare, can help you minimize or avoid IRMAA surcharges
📌 Every Dollar Counts: Exceeding the income threshold by just one dollar can cost you over $1,000 annually
Remember: Your decisions in retirement are building blocks for peace of mind. Understanding IRMAA and integrating it into your income strategy can make all the difference in preserving both your wealth and your wellbeing.