"Why did my Medicare  Part D premium just increase to more than $400 a month?” That’s the question I hear after people are on Medicare.  If you have a higher income - even if it's temporary or from a one-time event - you could be hit with an unexpected surcharge called IRMAA.  

 

The culprit? IRMAA — the Income-Related Monthly Adjustment Amount is an extra charge added to your Part B and Part D premiums if your income exceeds a certain threshold.

 

Here's the catch; IRMAA is based on your adjusted gross income on your tax return from two years ago - meaning a big Roth conversion, a large distribution from an IRA, sale of a property, severance payout, or even required minimum distributions could trigger it...even if your current income has dropped. 

 

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.

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I work with clients to help them:

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• Understand if they are at risk

• Appeal the charge (yes, it's possible)

• Strategically plan income in retirement to avoid future surcharges

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With the right planning, you may be able to;

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• Shift taxable income to tax-free sources

• Use Roth conversions strategically

• Time capital gains or IRA withdrawals wisely

• Reduce RMD impact through gifting or charitable distributions

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Income planning isn't just for taxes - it's for Medicare, too.  

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Medicare isn't one-size-fits-all.  And the rules aren't always fair - but knowing them can save you thousands.  

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If you're turning 65 or are already enrolled in Medicare and wondering why your premiums are higher than expected, let's talk.  Planning ahead can make all the difference.  

 

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.