IRMAA Thresholds in 2020

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PriceOfFreedom
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Re: IRMAA Thresholds in 2020

Post by PriceOfFreedom »

diy60, I agree with your analysis in part, in that I had not realized that the November 2020 CPI had already been released.

However, factoring that in, I still get a required 1.57 deflation average for Dec 2020 to Aug 2021 for the MFJ IRMAA threshold to drop from $174,000 to $172,000. I think where we differ, at least in part, is as follows:
It appears you used Dec 2019 to Aug 2020 to compute the average previous year's average CPI. I believe you should have used Sep 2019 to Aug 2020, yielding an average of 257.721
I think the rest of our difference is that my 1.57% deflation number is the average CPI for the current 12-month cycle (yielding an average CPI of 253.680, or a 1.57% decline, whereas your 2.7% number is for the remaining months' average of 251.473

Do we agree?
diy60
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Re: IRMAA Thresholds in 2020

Post by diy60 »

PriceOfFreedom wrote: Thu Dec 10, 2020 1:08 pm I believe you should have used Sep 2019 to Aug 2020, yielding an average of 257.721
Yes, the average is 257.721 which is what I used in my solver table. Ignore my percentages, good catch. It was a quick calculation I did this morning when I saw the thread bumped and I grabbed the wrong number for the percentages. However, the remaining 9 months of Dec 20 thru Aug 21 need to be equal or above the remaining 9 month averages for the different thresholds I listed. For example, to remain at $176,000 the full 12 month average Sept 2020 thru Aug 2021 can not drop below 256.612, which means the remaining 9 months must average at least 255.383.

I perform this calculation each December to gauge how close to the fence I want to play.
FactualFran
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Re: IRMAA Thresholds in 2020

Post by FactualFran »

PriceOfFreedom wrote: Thu Dec 10, 2020 1:08 pm However, factoring that in, I still get a required 1.57 deflation average for Dec 2020 to Aug 2021 for the MFJ IRMAA threshold to drop from $174,000 to $172,000.
$174,000 was the first IRMAA threshold for Medicare premiums during 2020 based on income on a Married Filing Jointly (MFJ) income tax return, usually, for 2018. It was set based on the change in the average CPI-U for the period Sep 2018 to Aug 2019 from the base period of Sep 2017 to Aug 2018. The first IRMAA threshold during 2020 for MFJ would have been less than $174,000 if the average CPI-U for the period Sep 2019 to Aug 2020 had been -0.133% or lower than the average for the period Sep 2018 to Aug 2019. The actual change was +1.90%.

That -0.133% difference is the result of 87499/87878-1. It is the percent difference between the unrounded value for filing Single and the value that when rounded to the nearest 1000 involves rounding down to the next lower 1000, from the threshold of $88,000 for filing Single. The official calculation may involve more digits than shown here.

The first IRMAA threshold during 2021 for MFJ is $176,000. For it to be less during 2022, the CPI-U for the period Sep 2020 to Aug 2021 will have to be -0.431% or lower than the average for the period Sep 2019 to Aug 2020.
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PriceOfFreedom
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Re: IRMAA Thresholds in 2020

Post by PriceOfFreedom »

Hi FactualFran, thank you for the correction. In my reply to diy60, I should have stated:

"However, factoring that in, I still get a required 1.57 deflation average for Dec 2020 to Aug 2021 for the MFJ IRMAA threshold to drop from $176,000 to $172,000"

To summarize for capran:

Current 2021 first IRMAA MFJ threshold is $176,000
To drop the 2022 threshold (applicable to 2020 MAGI) to $174,000, we require average 9/20 to 8/21 CPI be 87499/87878-1 of the 9/19 to 8/20 average value, or a deflation of 0.43% (as you correctly stated).
To drop the 2022 threshold (applicable to 2020 MAGI) to $172,000, we require average 9/20 to 8/21 CPI be 86499/87878-1 of the 9/19 to 8/20 average value, or a deflation of 1.57%.
To drop the 2022 threshold (applicable to 2020 MAGI) to $170,000, we require average 9/20 to 8/21 CPI be 85499/87878-1 of the 9/19 to 8/20 average value, or a deflation of 2.71%.
capran
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Re: IRMAA Thresholds in 2020

Post by capran »

diy60 wrote: Thu Dec 10, 2020 11:56 am
PriceOfFreedom wrote: Thu Dec 10, 2020 12:54 am For the 2020 MAGI threshold threshold to drop below $174,000, we would require that the average CPI for Sep 2020 to Aug 2021 be -1.57% relative to the average for Sep 2019 to Aug 2020.

For the threshold to drop below $172,000, we would require the average CPI be -2.71% relative to the average for Sep 2019 to Aug 2020.
I agree with your numbers, but given 3 months of data is already in the drop would need to be greater than you indicated relative to the remaining months of Dec '20 to Aug '21. Here is what I get.

Code: Select all

Known:					
Dec 2019 thru Aug 2020				258.49532	
Sept 2020			260.280		
Oct 2020			260.388		
Nov 2020			260.229		
Sept to Nov average				260.299	
					
Remaining unknown:					
Dec thru Aug, 2020 to 2021 average
			170000	243.652	-5.7%
			172000	247.562	-4.2%
			174000	251.473	-2.7%
			176000	255.383	-1.2%
			178000	259.293	0.3%
I may actually take some risk and shoot for $178K income this year, minus a little bit for any EOY dividend or cap gain surprises.
Interesting figures, although it's all Greek to me. To bump it to 178k you must be pretty confident the economy will continue to grow which will support an increase of the IRMAA threshold. I might be tempted as well, but for me I am in the process of trying to drain my IRA by converting as much as possible without going over the income limits, and a few thousand more every year before I hit the RMD age would still not let me deplete the IRA until my first year of RMD's. However, if I knew I were going to pass away any given year, I'd be tempted to take the whole balance and file as married filing separately with the idea that I would be dead and therefore not subject to the IRMAA surcharge. (assuming my spouse's income was below the threshold for her side of the income.
jhawktx
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Re: IRMAA Thresholds in 2020

Post by jhawktx »

"To bump it to 178k you must be pretty confident the economy will continue to grow which will support an increase of the IRMAA threshold."

It doesn't have to continue grow to bump it to 178k. It can go down and you'd still be ok. The number can be lower than any of the months of Aug, Sept, Oct, and Nov 2020 for every single month of the 9 remaining months and you could still bump it to 178. I don't think you have totally caught on to how the process works. Or, as you've noted, perhaps it is still all Greek.
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Oicuryy
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Re: IRMAA Thresholds in 2020

Post by Oicuryy »

Here is an estimate of what the Sept. through Aug. average CPI-U would need to be to reach various thresholds for the first IRMAA bracket.

Code: Select all

single      MFJ  avg. CPI
 86000   172000   250.776
 87000   174000   253.767
 88000   176000   256.509
 89000   178000   259.500
 90000   180000   262.492
The formula for the third column is =ROUND(ROUND((A1-500)/85000,3)*249.28,3).

The average of the first three months of the current period is 260.299.

Ron
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capran
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Re: IRMAA Thresholds in 2020

Post by capran »

jhawktx wrote: Tue Dec 15, 2020 3:08 pm "To bump it to 178k you must be pretty confident the economy will continue to grow which will support an increase of the IRMAA threshold."

It doesn't have to continue grow to bump it to 178k. It can go down and you'd still be ok. The number can be lower than any of the months of Aug, Sept, Oct, and Nov 2020 for every single month of the 9 remaining months and you could still bump it to 178. I don't think you have totally caught on to how the process works. Or, as you've noted, perhaps it is still all Greek.
That is a total understatement of my lack of understanding. I keep reading about negative growth/CPI and I don't think I can deal with the worrying about the economy falling off a cliff and having to pay the IRMAA surcharge for(both the regular one plus the Plan D) for two people. You are totally right. I don't even understand the 3rd column numbers (250.776, 253.767 etc) as I thought whenever I see CPI is see it in the form of percentages. and am having trouble wrapping my old head around exactly what numbers would need to be to get an increase or a decrease in IRMAA, other than what you posted. If I can live another 4 years I can get my IRA nearly empty at 90,000 a year, (with just 11k left) and hoping with wifes RMD's when they start that we can stay under the IRMAA, at least when there are 2 of us. But I also know she will have at least the first level IRMAA as a surviving spouse. If you have any references to help me understand how they are determining changes to the thresholds I could do extra reading, but sometimes I think I'm fighting a mental block.
jj
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Re: IRMAA Thresholds in 2020

Post by jj »

capran wrote: Wed Dec 16, 2020 12:13 am ...but sometimes I think I'm fighting a mental block.
I'm with you, this discussion is way too technical for me to follow.

My practical question, coming to the end of 2020 and finetuning my MFJ MAGI for this tax year, which will apply to the 2022 Medicare year is, 'is it sensible to assume that $174,000 will still be the 1st tier limit?' Could it go back down to $170,000 if deflation should take hold? Is there even the remotest possibility that this will happen?

In other words, what are other Bogleheads doing?
...it is madness to risk losing what you need in pursuing what you simply desire. Warren E. Buffett
capran
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Re: IRMAA Thresholds in 2020

Post by capran »

jj wrote: Wed Dec 16, 2020 9:59 am
capran wrote: Wed Dec 16, 2020 12:13 am ...but sometimes I think I'm fighting a mental block.
I'm with you, this discussion is way too technical for me to follow.

My practical question, coming to the end of 2020 and finetuning my MFJ MAGI for this tax year, which will apply to the 2022 Medicare year is, 'is it sensible to assume that $174,000 will still be the 1st tier limit?' Could it go back down to $170,000 if deflation should take hold? Is there even the remotest possibility that this will happen?

In other words, what are other Bogleheads doing?
I hope we get some replies, to your question soon. Originally I was planning my IRA/Roth conversion to bring my MAGI up to 171k, thinking that a 3k buffer was a good idea just because of possible last minute involuntary bond redemptions. The closer we get to December 31st, the less likely those will be a factor, especially if I wait until the last week of December. But when I started hearing news suggesting we could go to a negative 3% CPI next year, when the full scope of what is really happening in our economy, I thought it might be safer to move my target MAGI to 170k. Is it worth the worry to go up to the absolute upper limit of MAGI? If I pull out another 89k this year, it will bring me up to a total of 616k over the past 7 tax years, so I should be able to get mine to 11k by 2023, as long as we delay Spouses SS to 70. If we start her SS at FRA it would take me an extra 2 years to get it to zero. Just want to pull out as much as possible before tax cuts expire.
jj
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Re: IRMAA Thresholds in 2020

Post by jj »

capran wrote: Wed Dec 16, 2020 12:38 pm
jj wrote: Wed Dec 16, 2020 9:59 am
capran wrote: Wed Dec 16, 2020 12:13 am ...but sometimes I think I'm fighting a mental block.
I'm with you, this discussion is way too technical for me to follow.

My practical question, coming to the end of 2020 and finetuning my MFJ MAGI for this tax year, which will apply to the 2022 Medicare year is, 'is it sensible to assume that $174,000 will still be the 1st tier limit?' Could it go back down to $170,000 if deflation should take hold? Is there even the remotest possibility that this will happen?

In other words, what are other Bogleheads doing?
I hope we get some replies, to your question soon. Originally I was planning my IRA/Roth conversion to bring my MAGI up to 171k, thinking that a 3k buffer was a good idea just because of possible last minute involuntary bond redemptions. The closer we get to December 31st, the less likely those will be a factor, especially if I wait until the last week of December. But when I started hearing news suggesting we could go to a negative 3% CPI next year, when the full scope of what is really happening in our economy, I thought it might be safer to move my target MAGI to 170k. Is it worth the worry to go up to the absolute upper limit of MAGI? If I pull out another 89k this year, it will bring me up to a total of 616k over the past 7 tax years, so I should be able to get mine to 11k by 2023, as long as we delay Spouses SS to 70. If we start her SS at FRA it would take me an extra 2 years to get it to zero. Just want to pull out as much as possible before tax cuts expire.
Agreed, similar questions are going through my mind.

I will probably not make our end of year true-up Roth conversions for another two weeks, but I would like to have a plan mapped out as I tally all our distributions as they come in.
...it is madness to risk losing what you need in pursuing what you simply desire. Warren E. Buffett
capran
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Re: IRMAA Thresholds in 2020

Post by capran »

Agreed, similar questions are going through my mind.

I will probably not make our end of year true-up Roth conversions for another two weeks, but I would like to have a plan mapped out as I tally all our distributions as they come in.
[/quote]

Glad I am not alone. As with most things government, they rarely make anything crystal clear. Something like "the 2022 IRMAA surcharge income limits are based on the average quarterly CPI of the previous 4 quarters." I found this on the CPI links page:

Consumer prices increase 1.2 percent for the 12 months ending November 2020 DECEMBER 16, 2020
From November 2019 to November 2020, the Consumer Price Index for All Urban Consumers increased 1.2 percent, the same increase as for the period ending October 2020. Prices for all items less food and energy rose 1.6 percent over the last 12 months, also the same increase as the period ending October 2020. Food prices rose 3.7 percent from November 2019 to November 2020, while energy prices fell 9.4 percent.

So would that mean that in theory the IRMAA threshold would increase by 1.2%? (so if IRMAA MCFJ is $174,000, it would go up by $2,088, or a total of $176,088?) and if in the next 12 months it went down by 3% that would be a decline of 5283, or 170,805? Not to mention the difficulty of planning this years MAGI to be at one level, yet in 2 years, that level could, in theory, but substantially less! quite frustrating. I guess that's why accountants get paid the big bucks. LOL
FactualFran
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Re: IRMAA Thresholds in 2020

Post by FactualFran »

capran wrote: Wed Dec 16, 2020 2:19 pm Glad I am not alone. As with most things government, they rarely make anything crystal clear.
It is clear enough to some who post to this forum. The inflation adjustments to the income-related monthly adjustment amount (IRMAA) to Medicare part B premiums are defined in United States Code Title 42, Section 1395r(i)(5), with the heading "Inflation adjustment".

A relevant extract is
(A) In general
Subject to subparagraph (C), in the case of any calendar year beginning after 2007 (other than 2018 and 2019), each dollar amount in paragraph (2) or (3) shall be increased by an amount equal to-
(i) such dollar amount, multiplied by
(ii) the percentage (if any) by which the average of the Consumer Price Index for all urban consumers (United States city average) for the 12-month period ending with August of the preceding calendar year exceeds such average for the 12-month period ending with August 2006 (or, in the case of a calendar year beginning with 2020, August 2018).

(B) Rounding
If any dollar amount after being increased under subparagraph (A) or (C) is not a multiple of $1,000, such dollar amount shall be rounded to the nearest multiple of $1,000.
Key aspects are that inflation adjustments beginning for 2020
  • are made to the modified adjusted gross income (MAGI) threshold amounts for 2019
  • multiplied by the percentage the 12-month average of the CPI-U ending in August of the previous year exceeds the 12-month average ending August 2018
  • are then rounded to a multiple of $1,000
The inflation adjustments are made to the threshold amounts used for 2019 and then rounded. The inflation adjustments are not made to the (rounded) threshold amounts of the previous year, except for the first adjustment made for 2020.

Another relevant extract (from an earlier part of the law) is
(ii) Joint returns
In the case of a joint return, clause (i) shall be applied by substituting dollar amounts which are twice the dollar amounts otherwise applicable under clause (i) for the calendar year except, with respect to the dollar amounts applied in the last row of the table under subclause (III) of such clause (and the second dollar amount specified in the second to last row of such table), clause (i) shall be applied by substituting dollar amounts which are 150 percent of such dollar amounts for the calendar year.
capran
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Re: IRMAA Thresholds in 2020

Post by capran »

FactualFran wrote: Wed Dec 16, 2020 9:04 pm
capran wrote: Wed Dec 16, 2020 2:19 pm Glad I am not alone. As with most things government, they rarely make anything crystal clear.
It is clear enough to some who post to this forum. The inflation adjustments to the income-related monthly adjustment amount (IRMAA) to Medicare part B premiums are defined in United States Code Title 42, Section 1395r(i)(5), with the heading "Inflation adjustment".

A relevant extract is
(A) In general
Subject to subparagraph (C), in the case of any calendar year beginning after 2007 (other than 2018 and 2019), each dollar amount in paragraph (2) or (3) shall be increased by an amount equal to-
(i) such dollar amount, multiplied by
(ii) the percentage (if any) by which the average of the Consumer Price Index for all urban consumers (United States city average) for the 12-month period ending with August of the preceding calendar year exceeds such average for the 12-month period ending with August 2006 (or, in the case of a calendar year beginning with 2020, August 2018).

(B) Rounding
If any dollar amount after being increased under subparagraph (A) or (C) is not a multiple of $1,000, such dollar amount shall be rounded to the nearest multiple of $1,000.
Key aspects are that inflation adjustments beginning for 2020
  • are made to the modified adjusted gross income (MAGI) threshold amounts for 2019
  • multiplied by the percentage the 12-month average of the CPI-U ending in August of the previous year exceeds the 12-month average ending August 2018
  • are then rounded to a multiple of $1,000
The inflation adjustments are made to the threshold amounts used for 2019 and then rounded. The inflation adjustments are not made to the (rounded) threshold amounts of the previous year, except for the first adjustment made for 2020.

Another relevant extract (from an earlier part of the law) is
(ii) Joint returns
In the case of a joint return, clause (i) shall be applied by substituting dollar amounts which are twice the dollar amounts otherwise applicable under clause (i) for the calendar year except, with respect to the dollar amounts applied in the last row of the table under subclause (III) of such clause (and the second dollar amount specified in the second to last row of such table), clause (i) shall be applied by substituting dollar amounts which are 150 percent of such dollar amounts for the calendar year.
Thank you for helping me as I try to grasp how to compute the data. I am still just trying to learn what is clear to many who post here. I think what first threw me for a loop was seeing a previous post that listed a column of numbers like 250.776, 253.767 as estimates of what September-Aug average CPI-U would need to be to reach the various thresholds.
In my search for CPI-U I found this which gives and annual as well as a monthly look back, all listed as percentages which I can understand. https://www.bls.gov/news.release/pdf/cpi.pdf and from your paste of relevant it looks like one estimates a new year of IRMAA levels by multiplying the CPI-U of the preceding 12 months, rounding up to the nearest thousand. Am I getting close? Is there a site that posts the CPI-U data monthly? and if I am on the right track of understanding this, I could go forward in my guesstimating future scenarios and how IRMAA thresholds might fluctuate. (for example, if one assumed that in the coming year, CPI-U averaged zero, then one could assume the next years threshold would not change, yes? I appreciate your patience and assistance.
diy60
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Re: IRMAA Thresholds in 2020

Post by diy60 »

capran wrote: Thu Dec 17, 2020 3:34 pm Thank you for helping me as I try to grasp how to compute the data. I am still just trying to learn what is clear to many who post here. I think what first threw me for a loop was seeing a previous post that listed a column of numbers like 250.776, 253.767 as estimates of what September-Aug average CPI-U would need to be to reach the various thresholds.
In my search for CPI-U I found this which gives and annual as well as a monthly look back, all listed as percentages which I can understand. https://www.bls.gov/news.release/pdf/cpi.pdf and from your paste of relevant it looks like one estimates a new year of IRMAA levels by multiplying the CPI-U of the preceding 12 months, rounding up to the nearest thousand. Am I getting close? Is there a site that posts the CPI-U data monthly? and if I am on the right track of understanding this, I could go forward in my guesstimating future scenarios and how IRMAA thresholds might fluctuate. (for example, if one assumed that in the coming year, CPI-U averaged zero, then one could assume the next years threshold would not change, yes? I appreciate your patience and assistance.
Your getting close. Let me see if I can help.
- Here is the monthly CPI-U date for the last 10 years. https://www.bls.gov/regions/mid-atlanti ... _table.htm
- For 2020 and beyond, the base period of Sept 2017 thru Aug 2018 is used, which results in an base of 249.280 and a threshold of $85,000 for Single filing status.
- Forget comparing year over year, you need to compare to 249.280 going forward.
- The average for the Sept thru Aug period is compared to 249.280 and the 1 + % is applied to $85,000. The result is then rounded to the nearest $1,000.
- For MFJ the "rounded" amount is then multiplied by 2.

Can you see why your calculation is mathematically impossible following the above? You will always have an "even" number for MFJ (170K, 172K, 174K, 176K, 178K, 180K, and so on).

To add a little bit for you to think about, I also consider which side of the rounding we are on to decide how close to fence I want to play.
FactualFran
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Re: IRMAA Thresholds in 2020

Post by FactualFran »

capran wrote: Thu Dec 17, 2020 3:34 pm if one assumed that in the coming year, CPI-U averaged zero, then one could assume the next years threshold would not change, yes? I appreciate your patience and assistance.
Yes, if the year-to-year change in the average CPI-U from Sep. to Aug. was zero, then there would be no year-to-year change in the thresholds.

The average CPI-U from Sep. 2019 to Aug. 2020 was 257.721. If the average CPI-U from Sep. 2020 to Aug. 2021 turns out to be 257.721, then the thresholds for 2022 would the same as they were for 2021. The thresholds would also be the same if the year-to-year change in the average CPI-U was sufficiently small.
RetiredCSProf
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Re: IRMAA Thresholds in 2020

Post by RetiredCSProf »

Following ... but I'm feeling left out of this discussion because I file as HoH (same as single). I decided to bump up my income to the next IRMAA bracket with Roth conversions this year -- deciding how much more to convert before end of tax year 2020.

Should I keep my MAGI under $163K for 2020 return? [top of bracket for 2018 return, which determines 2020 Medicare premiums]
Or bump up to maximum MAGI of $165K? [top of bracket for 2019 return, which determines 2021 Medicare premiums]

Either way, this keeps me within 24% marginal federal tax bracket.
capran
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Re: IRMAA Thresholds in 2020

Post by capran »

I thought I was so close until I look at the new chart you linked to, which has the numbers like 257.971, 258.678, 258.115. for some reason that is throwing me for a loop because I have always thought of CPI as a percentage. Is the percentage that is commonly presented in the paper and on CNBC a percentage reflection of those numbers 2020 257.971 258.678 258.115 256.389 etc? so add the row of numbers for 2019, and the add all the numbers for 2019 and get the raw number and convert to the percentage of change from 2019 to 2020? woo hoo, I hope I am doing this right. I did the total sum for 2019 = 3067.889 then I plugged in an estimate for December of 260 and added that and all the other months for 2020= 3105.26. subtracted 2020 from 2019 getting a raw number of 37.371 and divided to get a percentage of .01218134. So that is the percent of increase from 2019 to 2020??? therefore, if the Married joint limit was 174,000 x .01218134=2119.553 for a total of 176,120, which would round to 176,000? Yes?????? If that's all correct, you get a gold star as a teacher! one last question... is the 174,000 number derived from looking at the difference between 2017 and 2018, which would apply to 2020 income? and then subsequently, 2018 to 2019 difference would apply to 2021 income, and progress forward like that? oops, reread your notes after computing. yes, I see the average from Sept 2017 thru Aug 2018 is 249.2801667 and that results in 2020 income threshold of 174,000. To compute next years, would it follow that I would get the average from September 2018 thru August 2019? (that would be 254.0164167) so would that be an increase of .019 (3305.949, so the 2021 threshold would go up to 177,000 for 2021????
fingers crossed...
FactualFran
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Re: IRMAA Thresholds in 2020

Post by FactualFran »

RetiredCSProf wrote: Thu Dec 17, 2020 11:25 pm Should I keep my MAGI under $163K for 2020 return? [top of bracket for 2018 return, which determines 2020 Medicare premiums]
Or bump up to maximum MAGI of $165K? [top of bracket for 2019 return, which determines 2021 Medicare premiums]
Use your favorite oracle that estimates the 12-month average of the CPI-U ending with the value for August 2021.

For the corresponding threshold for 2022 to be less than $165k, the average CPI-U for the 12-months ending August 2021 will need to be at least about 0.55% less than the average for the 12-months ending August 2020. For the threshold to be more than $165k, the average CPI-U for the 12-months ending August 2021 will need to be at least about 0.05% more than the average for the 12-months ending August 2020.
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Oicuryy
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Re: IRMAA Thresholds in 2020

Post by Oicuryy »

Here is FRED's graph of the CPI level for the last 60 months.

Image
https://fred.stlouisfed.org/graph/?g=yU50

Stare at the graph and decide if you are willing to bet that the average of the levels for the twelve months beginning with September 2020 will be greater than 260. If so use these thresholds for 2022 IRMAA brackets.

Single
89000
112000
139000
167000
500000

MFJ
178000
224000
278000
334000
750000

Only willing to bet it will be above 257? Use the 2021 thresholds.
https://www.cms.gov/newsroom/fact-sheet ... eductibles

Above 254? Use the 2020 thresholds.
https://www.cms.gov/newsroom/fact-sheet ... eductibles

Otherwise use the 2019 thresholds.
https://www.cms.gov/newsroom/fact-sheet ... eductibles

Ron
Money is fungible | Abbreviations and Acronyms
jj
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Re: IRMAA Thresholds in 2020

Post by jj »

Oicuryy wrote: Fri Dec 18, 2020 10:23 pm Here is FRED's graph of the CPI level for the last 60 months.

Image
https://fred.stlouisfed.org/graph/?g=yU50

Stare at the graph and decide if you are willing to bet that the average of the levels for the twelve months beginning with September 2020 will be greater than 260. If so use these thresholds for 2022 IRMAA brackets.

Single
89000
112000
139000
167000
500000

MFJ
178000
224000
278000
334000
750000

Only willing to bet it will be above 257? Use the 2021 thresholds.
https://www.cms.gov/newsroom/fact-sheet ... eductibles

Above 254? Use the 2020 thresholds.
https://www.cms.gov/newsroom/fact-sheet ... eductibles

Otherwise use the 2019 thresholds.
https://www.cms.gov/newsroom/fact-sheet ... eductibles

Ron
Thank you for posting this. It puts everything in context for me.
...it is madness to risk losing what you need in pursuing what you simply desire. Warren E. Buffett
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