Income Planning: Medicare Premiums

Income Planning: Medicare Premiums

     Now that tax returns for 2014 are filed, take one more look at the income
     to see how it affects Medicare premiums for those who are or will be eligible.      

     The Income Related Monthly Adjustment Amount (IRMAA) applies to those  

     on Medicare who have Adjusted Gross Income (AGI) plus tax exempt interest

     over $85,000 for those filing single and $170,000 for those filing married

     jointly.  The IRMAA is in addition to the regular Part B and Part D premiums.

     The sale of a business or other asset could trigger the IRMAA as well as  

     distributions from qualified retirement accounts (not ROTH IRAs).  2014

     income will determine the Medicare premium for year 2016.

     The new Medicare payment "fix" congress has passed is expected to add

     $141 billion to the federal deficit over the next 10 years according to the

     Congressional Budget Office.  To help offset some of the costs, the IRMAA

     will be going up starting in 2018.

                                                                                     -Keith Argo

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