Why did my Medicare  Part D premium just increase to more than $400 a month?” That’s the question I hear too often — after it’s too late to avoid it.

 

The culprit? IRMAA — the Income-Related Monthly Adjustment Amount.

 

IRMAA is an additional surcharge that can be added to your monthly Medicare premiums based on your yearly income.  Medicare looks at your income from two years ago and, if it’s above a certain threshold, adds a surcharge to your Part B and Part D premiums.

 

Retirees who take a large distribution from an IRA or sell a second home can trigger it without realizing it. The good news? There are smart ways to lower your income — or at least control the timing — so you don’t pay more than you have to.

 

Let’s plan together before it becomes a surprise. I help clients understand IRMAA, appeal charges, and avoid paying more than necessary.  Contact me if you need help with this.