IRMAA timing

RustyShackleford · Post by **RustyShackleford** » Tue Dec 04, 2018 8:53 pm

There's a lot of threads on IRMAA (increased Medicare premiums for higher-income persons) here. But there's one simple thing I can't figure out. I understand that IRMAA surcharges for the current year (year i ) are determined by AGI two years previous (in year i-2). So right now I can see that I had no IRMAA this year because my 2016 AGI was low enough. But as far as I can tell, the AGI thresholds for next year, based on 2017 AGI, have not been announced. Furthermore, when coming up with tax strategies for the end of this year 2018, we don't know what AGI thresholds will be determining our IRMAA surcharges in 2020, correct ? So do we just have to hope we get it right, if we're near the trigger points ?

Mlm · Post by **Mlm** » Tue Dec 04, 2018 9:02 pm

IRMAA thresholds are frozen through 2019. Starting in 2020 they will be adjusted for the CPI

https://www.ssa.gov/OP_Home/cfr20/418/418-1105.htm

RustyShackleford · Post by **RustyShackleford** » Tue Dec 04, 2018 9:17 pm

Mlm wrote: ↑
Tue Dec 04, 2018 9:02 pm
IRMAA thresholds are frozen through 2019. Starting in 2020 they will be adjusted for the CPI

Thanks. So starting in 2020 the AGI thresholds will be adjusted. We still don't know what will happen to the surcharge amounts, but that's only of secondary importance.

GerryL · Post by **GerryL** » Tue Dec 04, 2018 9:36 pm

And actually, it's not based on AGI but on MAGI. Unfortunately, there is not just one MAGI formula. There are several, and only one of them is specific to IRMAA. The difference between AGI and MAGI is probably not a big deal for most people, but if your AGI is right on the cusp of the IRMAA threshold, it could be an issue.

RustyShackleford · Post by **RustyShackleford** » Wed Dec 05, 2018 1:01 am

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HueyLD · Post by **HueyLD** » Wed Dec 05, 2018 6:54 am

RustyShackleford wrote: ↑
Wed Dec 05, 2018 1:01 am

GerryL wrote: ↑
Tue Dec 04, 2018 9:36 pm
And actually, it's not based on AGI but on MAGI. Unfortunately, there is not just one MAGI formula. There are several, and only one of them is specific to IRMAA. The difference between AGI and MAGI is probably not a big deal for most people, but if your AGI is right on the cusp of the IRMAA threshold, it could be an issue.
Oh my god.

This MAGi is actually quite simply defined.

Your MAGI for IRMAA is your total adjusted gross income and tax-exempt interest income

RustyShackleford · Post by **RustyShackleford** » Wed Dec 05, 2018 1:31 pm

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HueyLD · Post by **HueyLD** » Wed Dec 05, 2018 1:39 pm

That link is nonsense and confusing.

You need to look at the official source like this one from the SSA. https://www.ssa.gov/pubs/EN-05-10536.pdf And it says what I indicated above on page 2 of the pdf file.

RustyShackleford · Post by **RustyShackleford** » Wed Dec 05, 2018 5:17 pm

HueyLD wrote: ↑
Wed Dec 05, 2018 1:39 pm
That link is nonsense and confusing.

I guess it's true: you really can't trust everything you read on the internet. Thanks.

Bogleheads.org

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