Retirees and soon-to-be retirees should understand Medicare’s Income-Related Monthly Adjustment Amounts (IRMAAs). These surcharges increase Part B and Part D premiums for beneficiaries whose income exceeds certain thresholds. Because IRMAAs are based on modified adjusted gross income from two years earlier, people who recently retired (or soon will) may be charged higher premiums based on income earned while they were still working. Fortunately, Medicare allows beneficiaries to appeal these charges if they’ve experienced certain “life-changing events,” including retirement. With proper documentation, the surcharge may be reduced or eliminated. Contact us for more information.
