Ask Terry Questions Ira withdrawal and Medicare Part B premiums

Ira withdrawal and Medicare Part B premiums

By Terry Savage on June 22, 2023 | Financial Planning / Retirement

First thanks for all your advice. I have given my 3 daughters a copy of your book. In 2021 I took a withdrawal from my IRA to help finance a second home in Arizona. This year I qualify for Medicare and my withdrawal 2 years ago increased my AGI and caused a much higher cost of Medicare. I guess they go back 2 years to base your cost of Medicare. I was not aware of this and maybe you could mention it in a column. Also, based on your recommendation,I used Leslie Struthers to secure my loan. She was fantastic.

Terry Says

I have mentioned this issue many times –it’s called the IRMAA adjustment, and basically it increases your Part B premium if your income is higher than the brackets. I often mention this in conjunction with cashing in Savings Bonds or doing Roth Conversions or taking larger retirement plan distributions.

Here is a link to the specific IRMAA adjustment levels: https://www.socialsecurityintelligence.com/the-2023-irmaa-brackets/

It should adjust downward as they review your subsequent lower income years. But you can also appeal if they do NOT lower your premium next year. Here’s some information on that process from Medicare.

Thanks for buying my books for your daughters. Sadly, for your Part B premiums, it’s an old Savage Truth that the lessons that cost the most, teach the most!!

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