Many retirees are unaware of the Income-Related Monthly Adjustment Amount, commonly known as IRMAA. It was created when Congress decided higher-income earners should pay a larger part of their Medicare Part B premium. Before 2007, when it was passed, the government supplemented 75% of everyone’s Part B premium regardless of their income.

But as your Medicare Part B premium is based on your tax return from two years prior, it is not only high-income earners who find themselves subject to IRMAA. The selling of property, or making transfers of your 401K or IRA to a Roth account after age 63 if you go on Medicare at 65, can subject you to paying an increased Medicare Part B premium for at least 12 months. If you are married and you are both on Medicare, you will both pay the same increased premium.

There are special exceptions that allow you to have Social Security remove the increased premium, so if you find yourself in this position, contact a Social Security Advisor for advice on appealing it. To view the full article by Chris Kissell and Karla Bowsher on MSN.com, click here…

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