NOTICE OF IRMAA PREMIUMS 2023
My significant other, Mort, and I were together 38 years.. he passed away in July 2021. I was the trustee, executor and distributed his assets which consisted of stocks and mutual funds to his three sons and myself 25% each. This resulted in a one time increase in my adjusted gross income from under $90,000 to slightly under $150;000. This will never happen again. It’s a one time wind fall. The actions SSA is taking raises my Medicare Part B from $164.90 to $329.70 and Part D from $8.10 to $31.50. If we hadn’t received the 8.6% increase for 2023 their actions would be debiting me in some way on a monthly basis.
My accountant says write them a letter based on “life changing events”.
Could you give me any help that I can incorporate in my letter? I need to respond soon and appreciate your wise words in print, on tv and WGN. Thank you in advance for your expertise.
Terry Says
I’m trying to understand why an inheritance would raise your INCOME? Ask your accountant WHY? There is no tax on an inheritance of this size. And estate taxes are paid by the estate. Did the estate pay you a fee to act as executor?
Did you take a non-spousal withdrawal from your inherited IRA that year? Do you understand that if you inherited his IRA, you’ll have to keep taking taxable withdrawals and empty the account in 5 years –which will continue to raise your income.
Did you sell some of his stocks? If so, and you sold them promptly, there would be no taxable gain because of the step-up basis at death.
Bottom line: I can’t think of a reason — other than the above –that there would have been an impact on your adjusted gross income. So, sort that out first.
Then read this about appealing an IRMAA decision: https://www.ssa.gov/pubs/EN-05-10507.pdf