[Medicare & IRMAA]

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Topic Author
itsf8
Posts: 53
Joined: Thu Dec 24, 2009 1:42 pm

[Medicare & IRMAA]

Post by itsf8 » Sat Nov 09, 2019 2:27 pm

Neat year I become Medicare eligible. Regarding IMRAA, I know from this forum non-taxable dividends are adding back to the AGI. Is a charitable contribution deduction also added back?
Thank you

oxothuk
Posts: 465
Joined: Thu Nov 10, 2011 8:35 pm

Re: [Medicare & IRMAA]

Post by oxothuk » Sat Nov 09, 2019 3:13 pm

itsf8 wrote:
Sat Nov 09, 2019 2:27 pm
Neat year I become Medicare eligible. Regarding IMRAA, I know from this forum non-taxable dividends are adding back to the AGI. Is a charitable contribution deduction also added back?
Thank you
No, charitable contributions are a deduction, which is applied after AGI is already known

sport
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Location: Cleveland, OH

Re: [Medicare & IRMAA]

Post by sport » Sat Nov 09, 2019 4:10 pm

All "deductions" are calculated after and not included in the MAGI number. However, once you reach the age of 70.5 you will be eligible for Qualified Charitable Distributions (QCDs). These will reduce your MAGI and can help with IMRAA limits.

kaneohe
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Re: [Medicare & IRMAA]

Post by kaneohe » Sun Nov 10, 2019 9:04 am

itsf8 wrote:
Sat Nov 09, 2019 2:27 pm
....................... Regarding IMRAA, I know from this forum non-taxable dividends are adding back to the AGI. ...................
Do you mean tax-exempt interest?

sport
Posts: 8456
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Location: Cleveland, OH

Re: [Medicare & IRMAA]

Post by sport » Sun Nov 10, 2019 9:42 am

kaneohe wrote:
Sun Nov 10, 2019 9:04 am
itsf8 wrote:
Sat Nov 09, 2019 2:27 pm
....................... Regarding IMRAA, I know from this forum non-taxable dividends are adding back to the AGI. ...................
Do you mean tax-exempt interest?
Municipal bond funds distribute tax exempt dividends. Although the money comes from the interest paid by the fund's holdings, the fund's payouts are called dividends.

kaneohe
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Re: [Medicare & IRMAA]

Post by kaneohe » Sun Nov 10, 2019 4:07 pm

sport wrote:
Sun Nov 10, 2019 9:42 am
kaneohe wrote:
Sun Nov 10, 2019 9:04 am
itsf8 wrote:
Sat Nov 09, 2019 2:27 pm
....................... Regarding IMRAA, I know from this forum non-taxable dividends are adding back to the AGI. ...................
Do you mean tax-exempt interest?
Municipal bond funds distribute tax exempt dividends. Although the money comes from the interest paid by the fund's holdings, the fund's payouts are called dividends.
agreed, and at least 1 tax program I know........you enter as exempt interest dividends..........and it appears on the 1040 as tax exempt interest. All semantics I guess......just trying to use the most common language like here:

" Your MAGI is your total
adjusted gross income and tax-exempt interest income" https://www.ssa.gov/pubs/EN-05-10536.pdf

Topic Author
itsf8
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Joined: Thu Dec 24, 2009 1:42 pm

Re: [Medicare & IRMAA]

Post by itsf8 » Sun Nov 10, 2019 9:45 pm

Thank you all.
Just to be sure I understand, a charitable distribution (in this case, to a charitable gift fund), will not benefit me in terms of MAGI/IMRAA, correct? I was thinking of a contribution higher than I normally would take in the hopes to reduce IMRAA my first year. By year two I'll have no pension/income so will submit an appeal for reduction. I do plan to do the qualified charitable deduction upon reaching 70 1/2.

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Cyclesafe
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Re: [Medicare & IRMAA]

Post by Cyclesafe » Mon Nov 11, 2019 8:38 am

MAGI for IRMAA purposes gets no reduction from any post AGI deduction.

There is potential relief from IRMAA, however, if your situation qualifies. This is a more promising line of attack.

https://www.ssa.gov/pubs/EN-05-10536.pdf (page 4)
"Plans are useless; planning is indispensable.” - Dwight Eisenhower

Topic Author
itsf8
Posts: 53
Joined: Thu Dec 24, 2009 1:42 pm

Re: [Medicare & IRMAA]

Post by itsf8 » Mon Nov 11, 2019 10:48 pm

Thank you cyclesafe and all.

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