Solo 401k and MAGI and IRMAA

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
amorris101
Posts: 3
Joined: Wed Oct 31, 2018 2:40 am

Solo 401k and MAGI and IRMAA

Post by amorris101 »

Are contributions to a Solo 401k added back to Modified Adjusted Gross Income in regard to IRMAA? I am trying to find legitimate ways to avoid crossing an IRMAA threshold that would significantly increase my Medicare Part B and Part D premiums.
fabdog
Posts: 2163
Joined: Wed Jan 16, 2013 1:59 pm
Location: Williamsburg VA

Re: Solo 401k and MAGI and IRMAA

Post by fabdog »

How is Magi calculated for Irmaa?
MAGI is calculated as Adjusted Gross Income (line 11 of IRS Form 1040) plus tax-exempt interest income (line 2a of IRS Form 1040). The table below details the base premium amount you'll pay for Medicare in 2021 depending on your MAGI and filing status, inclusive of any additional IRMAA surcharge.
Solo 401K is carried from Schedule 1 onto line 10, so is part of your AGI.

Mike
User avatar
MP123
Posts: 3030
Joined: Thu Feb 16, 2017 3:32 pm

Re: Solo 401k and MAGI and IRMAA

Post by MP123 »

fabdog wrote: Wed Nov 23, 2022 6:30 pm
How is Magi calculated for Irmaa?
MAGI is calculated as Adjusted Gross Income (line 11 of IRS Form 1040) plus tax-exempt interest income (line 2a of IRS Form 1040). The table below details the base premium amount you'll pay for Medicare in 2021 depending on your MAGI and filing status, inclusive of any additional IRMAA surcharge.
Solo 401K is carried from Schedule 1 onto line 10, so is part of your AGI.

Mike
But just to be clear, it's an adjustment. So it reduces your total income to arrive at your adjusted gross income (AGI). So it's not part of your AGI, although it factors in as a negative when calculating AGI. Depends on how you look at it I guess.
Post Reply