Will my IRMAA for Medicare be based on 2024 income or 2025 SS benefits income?
I'm a 64-year-old widow planning to retire at the end of 2024. I've already spoken with SSA about claiming my late husband's survivor benefits through a restricted application (I have all the paperwork ready), which will let my own retirement benefit grow until I turn 70. I'll still be working through December 2024, but in 2025 my only income will be from Social Security. I know I need to sign up for Medicare in July 2025 (3 months before I turn 65), but I'm confused about how IRMAA (Income-Related Monthly Adjustment Amount) will be calculated. Will they look at my 2024 income when I was still working full-time, or will they base it on my much lower 2025 income which will only be Social Security benefits? This makes a huge difference in my budget planning since IRMAA could add a significant amount to my Medicare premiums. Has anyone gone through this recently? Thanks for any help!
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Mateo Rodriguez
They look at your tax return from 2 years prior, so for 2025 Medicare, they'll initially use your 2023 income. However, you can file Form SSA-44 for a life-changing event (retirement qualifies) to have them use your more recent income instead. Make sure you keep documentation of your retirement date and income change.
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Nia Thompson
•Thank you! That's really helpful. So if I understand correctly, they'll first calculate based on my 2023 income, but I can file this Form SSA-44 to have them reconsider based on my retirement? Do you know if I file that form when I apply for Medicare or after I get the IRMAA determination?
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Aisha Abdullah
When my husband retired I thought they would automatically adjust the IRMAA but NOPE! We had to pay the higher amount until we filed that SSA-44 form. Defintiely do that right away when you retire so you dont get stuck paying the higher amount.
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Nia Thompson
•Thanks for the heads up! I'll definitely make sure to file the form right away. Did it take long for them to process your form and adjust the premium?
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Ethan Wilson
Just went through this myself. SSA uses a 2-year lookback for IRMAA, but retirement is considered a "life-changing event" that allows you to request an adjustment. You'll need to complete Form SSA-44 and provide proof of your retirement (last paystub, employer letter, etc). The form asks for your estimated income for the year, which in your case would just be your SS benefits for 2025. One important thing - Social Security retirement benefits aren't counted in the IRMAA calculation, but certain other income like taxable interest, dividends, capital gains, and retirement account withdrawals are. Make sure you're only counting truly countable income on your form.
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Nia Thompson
•That's really good to know about Social Security benefits not being counted toward IRMAA! I was worried my survivor benefits would push me into a higher bracket. I'll have some small interest income from savings but nothing significant. Thank you!
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NeonNova
I STILL don't understand why they make this so complicated!!! I had to pay higher premiums for TWO YEARS after I retired because I didn't know about the stupid form and the lady at the SSA office never told me about it when I signed up for Medicare!!! SO FRUSTRATING!!!
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Yuki Tanaka
•That's awful! The whole system seems designed to make us pay more. When I called SSA about IRMAA last year, I was on hold for 2 hours and then got disconnected. Tried again the next day - another hour and a half wait. They make it nearly impossible to get help.
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Carmen Diaz
My dad just went thru this. Be careful about any IRA or 401k withdrawls you make in 2024 too, those count towards IRMAA and could bump you up.
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Nia Thompson
•That's a good point - I wasn't planning any withdrawals in 2024, but I'll be careful about any financial moves that might impact income. Thanks for the warning!
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Andre Laurent
You might also want to consider how your survivor benefit timing affects things. If you take it in January 2025 versus December 2024, that's one less month of benefits in 2024 that might affect your IRMAA calculation. Every little bit can help if you're near a threshold. I highly recommend using Claimyr.com to reach SSA directly about this specific question. I was trying to figure out a similar IRMAA issue and was facing 3+ hour hold times until I found their service. They got me through to an agent in about 20 minutes who confirmed exactly how my retirement would affect my IRMAA. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU
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Nia Thompson
•That's a smart strategy about the timing! I hadn't considered how that one month difference might matter. And thanks for the Claimyr suggestion - those hold times are exactly why I've been avoiding calling. I'll check out the video.
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Aisha Abdullah
also remeber u can appeal the IRMAA if its a hardship. my neighbor did that when her income dropped alot after her husband passed away.
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Mateo Rodriguez
•That's different from what the OP is asking about. The SSA-44 is for life-changing events (retirement, death of spouse, divorce, etc.), while hardship appeals are handled through the Request for Reconsideration (Form SSA-561-U2) which has different criteria. For the original poster, the SSA-44 for retirement is the correct form.
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Yuki Tanaka
I was in almost the same situation last year - I filled out the SSA-44 when I retired and it worked fine, but make sure you're precise about your income estimate. I had to amend mine because I forgot about a CD that matured and the interest pushed me into the next IRMAA bracket!
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Nia Thompson
•Oh, that's a good reminder! I do have a small CD maturing next year. I'll make sure to include that interest in my calculations. It's amazing how even small amounts can push you over a threshold.
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Ethan Wilson
The IRMAA thresholds for 2025 haven't been announced yet, but for 2024, the standard Medicare Part B premium is $174.70, with IRMAA surcharges starting at incomes above $103,000 for single filers. Since your income will be much lower in 2025 after retirement, filing the SSA-44 promptly will save you from paying the higher premium amounts based on your 2023 income.
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NeonNova
•Wow those premiums keep going up! My mom paid like $140 last year and now it's $174?? That's a huge increase for people on fixed incomes!
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Nia Thompson
Thank you all so much for the helpful advice! I'm feeling much better about this now. I'll definitely file the SSA-44 form immediately after retiring to report the life-changing event. And I'll be careful to account for any non-SS income like interest when estimating my 2025 income. I'm glad I asked because I had no idea they initially use a 2-year lookback period! That would have resulted in much higher premiums than I budgeted for. This forum has been incredibly helpful.
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