Will selling investments reduce my Social Security? Income limits confused after mom's $400/month SS reduction

This isn't about Social Security benefit reductions - it's almost certainly about Medicare premium increases through IRMAA (Income-Related Monthly Adjustment Amount). When your income goes above certain thresholds, Medicare Part B (and D if they have it) premiums increase substantially. The "reduction" they're seeing is actually Medicare taking a bigger premium from their Social Security payment. For 2025, IRMAA is based on 2023 income (there's a 2-year lookback). Thresholds for 2025 (based on 2023 MAGI): - Individual tax return: $103,000 is the first threshold - Each threshold after that triggers higher premiums The good news: this is temporary. Once their income drops back below the threshold, the premium increase goes away. Also, they can file for a reduction using Form SSA-44 if the income was a one-time event like selling property.

YEP ITS IRMAA!!!! Happened to me when i sold my vacation home in florida. HUGE SHOCK on my SS payment the next year!! They took almost $500 more every month for medicare. Nobody warns you about this!!!!!

This is definitely IRMAA (Income-Related Monthly Adjustment Amount), not a reduction in Social Security benefits. For clarification: - Social Security benefits themselves aren't reduced due to income after you reach Full Retirement Age - However, Medicare premiums (which are typically deducted from SS payments) increase based on income from 2 years prior - The $400/month reduction is almost certainly from jumping multiple IRMAA brackets - Selling a rental property or stocks creates significant one-time income that pushes people into higher brackets If the income increase was due to a life-changing event (like selling a primary home due to health), they can file Form SSA-44 for potential relief. But investment sales generally don't qualify. The best strategy is to plan sales across multiple tax years to avoid jumping too many brackets at once. For 2025, staying under $103,000 MAGI (for individuals) would avoid IRMAA completely.

has anyone else had terrible luck trying to reach social security about irmaa problems? i filed the ssa-44 and sent it in 3 months ago but havent heard anything. call the 800 number every week and just get disconnected or wait hours. went to my local office and they said they cant help with irmaa issues have to call the main line. so frustrating!!!!

My friend got hit with this and said if your mom and aunt just wait it out, after 1 year the Medicare premiums will go back to normal automatically (assuming they don't have another high income year). It's only permanent if your high income is permanent.

To directly answer your threshold question: For 2025 (based on 2023 income), the IRMAA brackets for individuals are: - $103,000 or less: No IRMAA surcharge - $103,001-$129,000: +$69.90/month - $129,001-$161,000: +$174.70/month - $161,001-$193,000: +$279.50/month - $193,001-$500,000: +$384.30/month - Over $500,000: +$419.30/month For married filing jointly, the thresholds are higher. These are approximate 2025 amounts based on projected increases, but they give you an idea of the brackets. Based on your mother's $400 reduction, she likely jumped several brackets with that property sale. The key is proper tax planning before large asset sales. Consider strategies like installment sales, tax-loss harvesting, and timing of transactions across tax years.

One other thing nobody mentioned - part of your SS can become TAXABLE when your income goes up too!!! So the IRMAA isnt the only hit they might be taking!!!

Quick follow-up on tax implications: Up to 85% of Social Security benefits can become taxable when provisional income exceeds certain thresholds. Provisional income = Adjusted Gross Income + 50% of SS benefits + tax-exempt interest. For single filers: - Below $25,000: No tax on SS - $25,000-$34,000: Up to 50% taxable - Above $34,000: Up to 85% taxable For joint filers, thresholds are $32,000 and $44,000. So yes, selling large assets can create a double whammy - higher Medicare premiums AND more of their Social Security becoming taxable. Careful planning across multiple tax years is really important.

As someone new to this community, I just wanted to say thank you to everyone who explained IRMAA so clearly! I'm 63 and planning to retire in a few years, and I had no idea about these Medicare premium increases based on income from 2 years prior. This thread is a perfect example of why these discussions are so valuable. I was actually considering selling some stocks next year to pay off my mortgage before retirement, but now I realize I need to think about the timing much more carefully to avoid jumping into higher IRMAA brackets. Does anyone know if there are good resources or calculators to help plan these kinds of transactions? It sounds like spreading sales across multiple years could make a huge difference in avoiding these premium increases.