Social Security benefits reduced by IRMAA while spouse still working - worth waiting to file?
I just got blindsided by how much IRMAA is cutting into my Social Security check because my husband (67) is still working full-time. His income in 2023 pushed us into a higher bracket, and I'm losing almost $270 monthly to Medicare premiums! He's planning to retire in March 2025 (next month). He's eligible for SS now but hasn't filed yet. We're thinking about having him wait until 2027 to apply for his benefits for several reasons: 1. By 2027, SSA will be looking at his 2025 income (mostly retirement) which should be WAY below the IRMAA threshold 2. Waiting would increase his monthly benefit amount significantly 3. When he does file, I should qualify for higher spousal benefits 4. Both of us would avoid the IRMAA surcharge (saves us about $5,400/year combined) We have enough retirement savings to bridge the gap for those 2 years. When we did the calculations, it looks like we'd come out ahead by almost $47,000 over 5 years by waiting! Has anyone else delayed filing specifically because of IRMAA considerations? Did your strategy work out as planned? Any pitfalls I'm not seeing?
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Javier Hernandez
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.
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Natasha Petrova
•Thank you! I hadn't thought about how our retirement withdrawals might affect the MAGI calculation. Most of our savings is in traditional IRAs so those distributions will count as income. I'll need to recalculate based on how much we'll need to withdraw annually. I appreciate the reminder about survivor benefits too - that's definitely something to factor in.
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Emma Davis
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!!
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Natasha Petrova
•Ouch, $400 extra per month is painful! That's exactly what we're trying to avoid. Did you look into filing an appeal with Form SSA-44 for a life-changing event (like retirement)? I've read that can sometimes help reduce the IRMAA amount.
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LunarLegend
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.
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Emma Davis
•wait is spousal benefit 50% of what he WOULD get at FRA or 50% of what he ACTUALLY gets after delayed credits??? big difference!
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LunarLegend
•Good question. Spousal benefits are based on the worker's PIA (the amount at Full Retirement Age), not including any delayed retirement credits. So if your spouse waits past FRA to file, their benefit increases, but your spousal benefit remains capped at 50% of their PIA.
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Malik Jackson
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!!!
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Isabella Oliveira
•I had the same problem trying to reach SSA about an IRMAA issue last month. After getting disconnected three times and waiting on hold for over 2 hours, I found a service called Claimyr that got me through to an agent in about 20 minutes. They basically call SSA for you and connect you when they reach an agent. Saved me hours of frustration. You can see how it works at https://youtu.be/Z-BRbJw3puU or their website claimyr.com. Worth it when you're dealing with something complicated like IRMAA appeals that you need to talk to a real person about.
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Ravi Patel
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.
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Freya Andersen
•That's not entirely accurate. IRMAA was designed to have higher-income beneficiaries pay a larger share of Medicare costs. The standard Part B premium only covers about 25% of the actual cost of services. Without IRMAA, all taxpayers would subsidize Medicare costs for high-income retirees. It's not a penalty - it's reducing the subsidy for those who can afford to pay more.
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Natasha Petrova
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.
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Javier Hernandez
•Good news - qualified HSA withdrawals used for medical expenses are tax-free and don't count toward your MAGI for IRMAA purposes! That's a great strategy to help bridge the gap while keeping your income below the thresholds. Just make sure you keep receipts for all qualified medical expenses.
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Emma Davis
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
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LunarLegend
•That would be Form SSA-44, "Medicare Income-Related Monthly Adjustment Amount - Life-Changing Event." Retirement itself isn't considered a qualifying life-changing event, but the resulting reduction in income in subsequent years will eventually lower IRMAA without needing to file this form. The qualifying life events include: death of spouse, marriage, divorce, work reduction, work stoppage (losing your job, not voluntary retirement), loss of income from income-producing property, and loss or reduction of certain kinds of pension income.
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