Income Planning: Medicare Premiums
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.