Social Security benefits reduced by IRMAA while spouse still working - worth waiting to file?

You're on the right track with your thinking! IRMAA is based on your income from 2 years prior, so waiting until 2027 would indeed mean they'd look at his 2025 income (with minimal earnings). A couple things to double-check though: 1. Make sure you understand how withdrawals from retirement accounts might affect your MAGI for IRMAA purposes 2. Remember that Roth distributions don't count toward IRMAA thresholds 3. Consider how delaying benefits impacts survivor benefits if something happens to either of you In my experience helping clients with this exact situation, the math usually does favor waiting when IRMAA is involved, especially when you factor in the permanent increase to his primary insurance amount (PIA) and the higher spousal benefit you'll receive.

weve been in similar situation my wife claimed at 62 and Im still working part time at 68... IRMAA is a killer!! we pay almost $400 extra EACH MONTH just for medicare because of my income from 2 years ago. wish someone warned us about this before she filed!!

I believe your strategy is sound based on the information provided. Waiting until 2027 will allow your husband to increase his monthly benefit by approximately 16% compared to filing now (assuming he's currently at FRA). The IRMAA savings are substantial as you've calculated. One important consideration: if your husband's PIA (Primary Insurance Amount) is significantly higher than yours, it might affect the optimal strategy for maximizing your combined lifetime benefits. When he files, your spousal benefit would be up to 50% of his PIA minus your own retirement benefit. Also, be aware that IRMAA thresholds can change. For 2024, the first IRMAA tier starts at $103,000 for married filing jointly. Make sure your retirement withdrawals keep you under whatever the threshold will be in 2027.

I went through EXACTLY this last year! My husband was still working while I started SS at 65. The IRMAA hit was MASSIVE. We appealed with Form SSA-44 after he retired but got denied because they said retirement is "foreseeable" and doesn't count as a qualifying life event. So frustrating!!! Honestly, I regret not waiting. Your plan to delay until 2027 makes perfect sense. You'll save on IRMAA AND get higher benefits. Just make sure you can manage your income from retirement accounts during the gap years. By the way, has anyone tried calling SSA to get more details on IRMAA appeals? I've tried for WEEKS and can't get through to a real person!!!

IRMAA is such a scam!!! The government just keeps finding ways to take our money. Why should we be penalized just because we saved for retirement and have some income? It's ridiculous.

Thank you all for your insights! Based on your suggestions, I've done some more calculations and we're sticking with our plan to have my husband wait until 2027 to file. I've set a reminder to check the IRMAA thresholds each year since they can change. I'm also going to talk with our financial advisor about structuring our retirement withdrawals to minimize MAGI during those years. Maybe we can use some Roth conversions we did years ago to help stay under the threshold. Quick question: Does anyone know if HSA withdrawals count toward IRMAA calculations? We have about $24,000 in an HSA we could use for medical expenses during the gap years.

my friend said he got his IRMMA reduced after he retired by filing some special form with social security. forgot what its called but worth looking into

Your strategy sounds really well thought out! I'm in a similar situation - my husband is 65 and still working, and we're considering delaying his SS filing partly because of IRMAA concerns. One thing I wanted to mention that might help with your planning: you can actually do Roth conversions during the gap years (2025-2026) while keeping your income low, then use those converted funds later without affecting IRMAA. Since you'll have lower income those years anyway, it might be a good opportunity to convert some traditional IRA funds at lower tax rates. Also, I've been tracking the IRMAA thresholds and they've been increasing slightly each year due to inflation adjustments. For 2025, the first threshold for married filing jointly went up to $206,000 (from $204,000 in 2024). So there's a chance the thresholds might be even higher by 2027, giving you a bit more breathing room. Have you considered what you'll do if one of the IRMAA thresholds gets eliminated or changed significantly before 2027? I know it's unlikely, but given all the talk about Medicare reform, it might be worth having a backup plan.

As someone who's been navigating Social Security planning for the past few years, I think your strategy is excellent! The math on delaying for IRMAA avoidance often works out really well, especially when you factor in the delayed retirement credits. One thing I'd suggest is to also look into whether your state taxes Social Security benefits. Some states don't tax SS at all, which could make your strategy even more beneficial. Also, if you haven't already, consider setting up a detailed spreadsheet to track your projected MAGI each year from 2025-2030. Include estimated retirement account withdrawals, any pension income, and even things like interest/dividends. This will help you fine-tune your withdrawal strategy. The fact that you have enough savings to bridge those two years puts you in a great position to optimize this. Many people don't have that luxury and end up filing early just because they need the income, then get hit with IRMAA on top of lower monthly benefits. Have you thought about whether doing some charitable giving during the high-income years could help reduce your IRMAA burden? Qualified charitable distributions from IRAs after age 70.5 don't count toward your AGI.

This is such valuable information for anyone dealing with IRMAA! I'm 62 and my wife is 64, and we're facing a similar decision. Her income from consulting work is pushing us into IRMAA territory, but she's planning to scale back significantly next year. One thing I learned from our financial planner that might help others: if you're doing Roth conversions during low-income years, you can spread them out over multiple years to stay within lower tax brackets AND avoid accidentally pushing yourself back into IRMAA territory later. Also, for anyone considering this strategy - make sure to factor in Required Minimum Distributions (RMDs) starting at 73. Those could potentially push you back into IRMAA range even if you're trying to keep income low. We're actually doing some Roth conversions now specifically to reduce our future RMDs. The two-year lookback for IRMAA is both a blessing and a curse - it gives you time to plan but also means you're always dealing with old income data. Your 2027 filing strategy based on 2025 income is exactly the kind of forward thinking that can save thousands!

Your strategy is really smart! I'm 59 and my husband just turned 64, and we're dealing with something similar. He's still working as an engineer and his salary is definitely going to trigger IRMAA when I start Medicare in a few years. One thing our tax advisor mentioned that you might want to consider - make sure you're accounting for any part-time work or consulting income your husband might do after he "retires" in March. Even small amounts of earned income could affect your calculations if it pushes you over the thresholds. Also, I've been researching this extensively and found that some people use the gap years to do strategic tax planning - like harvesting capital losses or timing the sale of investments to minimize future tax burden. Since you'll have lower income anyway, it might be a good time to clean up your investment portfolio tax-wise. The $47,000 advantage over 5 years sounds fantastic! Just curious - did you factor in the opportunity cost of not having that Social Security income invested during the delay period? I know with your situation it probably still comes out ahead, but I'm trying to run similar numbers for our scenario.