Did You Know You Can Appeal Higher Medicare Premiums?

What can be worse than expecting to finally get a Social Security raise, only to find out that your net check actually went down due to your income two years ago?

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What can be worse than expecting to finally get a Social Security raise, only to find out that your net check actually went down due to your income two years ago? Let me introduce you to the Income-Related Monthly Adjustment Amount, or IRMAA for short.

Here’s what you’ll pay according to Medicare.gov:

Income-Related Monthly Adjustment Amount

Individual and separate filers under Modified Adjusted Gross Income (MAGI) of $85,000 are safe, and so are joint filers under $170,000. MAGI is Adjusted Gross Income (AGI) plus tax-exempt interest.

Life-Changing Events that Qualify for Appeal

Individual and separate filers under Modified Adjusted Gross Income (MAGI) of $85,000 are safe, and so are joint filers under $170,000. MAGI is Adjusted Gross Income (AGI) plus tax-exempt interest.

What if your MAGI was $180,000 in 2016, and you retired in January 2018? The Social Security Administration (who oversees Medicare) won’t find out about your lower income until 2019 when you file your 2018 taxes and won’t automatically lower your premiums until 2020. However, you can file an appeal letting them know about your income drop, which should reduce your premiums. Here are the acceptable reasons or life events that qualify for appeal as listed on Form SSA-44:

  • Reduction or stoppage of work by you or your spouse
  • The death of a spouse
  • Marriage
  • Divorce or annulment
  • Involuntary loss of income-producing property due to a natural disaster, disease, fraud, or other circumstances
  • Loss of pension
  • Receipt of settlement payment from a current or former employer due to the employer’s closure or bankruptcy

You will need to provide evidence of the life-changing event, but don’t wait and get stuck with higher premiums for the next two years! A CERTIFIED FINANCIAL PLANNER™ can help you understand what your MAGI is and help  you develop a yearly tax strategy to help you keep more of your money.

Will Your Money Last Through Retirement?

No one wants to run out of money. But without goals and a solid plan,
how can you know for sure whether you’re on the right track?

Will I be able to maintain my current lifestyle?

What will my monthly income be in retirement?

Can I protect my hard-earned savings and still
have the income I want?

Rodgers & Associates answers questions like these every day.

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2025 Lititz Pike, Lancaster, PA 17601
Phone: 717-560-3800, Toll-Free: 888-876-3437