If I take out too much money from a traditional IRA in a year and if it raises my Medicare premium at what point would the increase go into effect and would it automatically go back down after a year? This would just be a one time event and I am over age 60 and on medicare because of SSDI. I hope i asked this question right and thank you for your inputs.
So let’s say you had a large t-IRA distribution and in 2024 your income was large enough to cause a Medicare IRMAA penalty. You will file your 2024 taxes in 2025, and by December 2025 you will get an IRMAA notification letter, and the penalty will apply for 2026. So it’s a two-year look-back period. It has to be, because you have to file your taxes, and Medicare needs time to respond.
The IRMAA penalty is year by year, it does not persist if your large income does persist.
You may file an IRMAA appeal using form SSA-44 in certain cases… death of spouse, partial or full loss of employment, and some other cases which are listed on the form instructions.
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Thank you for the info, very helpful. I also have 4 more years left to get my medical premiums reimbursed from my company due to an early out package.
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I was looking at the IRMAA threshold. As of 2022, the amount was $103,000. Probably higher now if assuming it is indexed. So, as long as MAGI is under the threshold, no IRMAA penalty?
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Was $103,000 thru 2024 I think. $106,000 for 2025. If AGI is below that you pay only the basic Part B premium.
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