You Could Pay a Higher Medicare Premium - Kiplinger
Many beneficiaries, especially new ones, aren’t aware that Medicare Part B is a “means tested” program, which means that if your income is high enough, you will pay more than the standard Part B premium ($170.10 for 2022). This is because of a provision known as the Income Related Monthly Adjustment Amount, or “IRMAA” which, if your income exceeds certain thresholds, will add a supplemental amount to your monthly Part B premium. And that supplemental amount could be very high, depending on how much your income exceeds the threshold for your tax filing status. The rules are complicated, and the income used to determine next year’s Part B premium is your income from last year, further confusing the issue. And this comes as a surprise to many who start taking their Required Minimum Distributions (RMDs) from their tax advantaged accounts – their RMD is taxable, thus potentially raising their taxable income above the IRMAA thresholds, bumping their Medicare Part B premium substantially upward. Taxation of your income is, as the saying goes, inevitable, but the doubled whammy comes if you get hit with a higher Part B premium you weren’t expecting. This Kiplinger article by David McClellan explains all about Medicare’s Income Related Monthly Adjustment Amount, and how taking your RMD could result in an unsuspecting financial hit for you. Click here to read more.