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Look out for the “IRMAA Trap” if you are close to going on Medicare! - MSN.com Moneywise
The Income-Related Monthly Adjustment Amount (IRMAA) catches many retirees off guard. It takes Social Security almost two years to get your tax return, meaning that your Medicare Part B and D premiums are based on income from two years prior.
The Medicare Part B premium someone pays currently in 2026 is based on their 2024 Modified Adjusted Gross Income (MAGI). The limits are $109,000 for singles and head-of-households, and $218,000 for married filing jointly. It is also $109,000 for married filing separately, but with fewer income brackets.
There are qualifying exemptions from IRMAA, including retirement. But activities such as selling a home or transferring regular IRA or 401(k) funds to a Roth IRA or 401(k) do not qualify and may subject you to a higher Medicare premium for 12 months.
If you are 63 or older, you should take these MAGI limits into consideration as part of your retirement plan. An article by Moneywise highlights what is often called the “IRMAA Trap.” To read the full article, click here …
If you would like more information about IRMAA, or are subject to an IRMAA premium and want to know if you qualify for an exemption, call and speak with an AMAC Foundation Accredited Social Security Advisor (888)750-2622. No time for a phone call, email your questions to ssadvisor@amacfoundation.org.
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