Risk Management & Insurance

The couple sat across from me, both retired 18 months. Staring at a letter from Social Security. Their financial advisor had told them to "let it ride" on their final year bonus, which led to a $10,000 annual surcharge they didn't see coming. Look, the projected 2026 Medicare Part...

The term "IRMAA" can feel like a penalty for a lifetime of hard work and saving. It's the Income-Related Monthly Adjustment Amount, a surcharge that can add thousands of dollars to your annual Medicare premiums. But it doesn't have to be a surprise. I created this free IRMAA calculator to...

Your 2024 Modified Adjusted Gross Income (MAGI) determines whether you'll pay Part D IRMAA surcharges in 2026 through Medicare's two-year look-back rule. If you're a single filer earning over $109,000 or filing jointly above $218,000, you'll face monthly surcharges ranging from $14.50 to $91.00 added to your base premium. These income-related adjustments affect approximately 8% of Medicare beneficiaries,...

You're 63. Your tax preparer says your AGI is $105,000. Comfortably below the $109,000 IRMAA threshold. You relax. Two years later, at 65, you get a letter: your Medicare Part B premium is $974 higher annually ($81.20/month) because of $5,000 in tax-free municipal bond interest you (and your CPA)...

David's Income Runway Strategy 2024 (Year of Tax Return Impact): Concentrate major income events. Take the bonus and company stock sale in full during 2024. This creates the MAGI that will be locked in for 2026 Medicare premiums. 2025 (Year Before Medicare): Minimize all controllable income. Defer discretionary bonuses, delay stock...

If you're reading this in 2026, your Medicare premiums for the year are already determined by your 2024 income—in fact, the Social Security Administration finalized your IRMAA brackets in early 2026 using your 2024 Modified Adjusted Gross Income (MAGI). Same with Part D too. And if you experienced any...

According to Kiplinger, the average high-income beneficiary pays $3,847 per year in Medicare Part B and Part D surcharges. But what if I told you that with proper planning, you could reduce or eliminate these costs entirely? This isn't about finding a loophole; it’s about understanding the rules better than the government expects you...

You must use Form SSA-44 (Medicare Income-Related Monthly Adjustment Amount; Life-Changing Event) to file an IRMAA appeal with the Social Security Administration (SSA). This form allows you to request a reduction in your Medicare Part B and Medicare Part D premiums if a qualifying life-changing event (such as retirement or divorce) has significantly reduced your Modified...

I'm Michael Ryan, and in my 3 decades as a financial planner, the most common and heartbreaking mistake I’ve witnessed has always centered on bad timing. And winning an appeal is not easy. You’ve worked decades to build a successful Traditional IRA or a healthy investment portfolio. You’ve earned the...

Did you know the Medicare IRMAA surcharge can impose a hidden, devastating 194,904% effective marginal tax rate on a single extra dollar of retirement income? This penalty, which adds thousands in annual Medicare premiums, blindsides even sophisticated savers because of the dangerous 2-Year Look-Back Rule. Additionally, understanding the implications of the medicare hold harmless...