We Were Bitten by Medicare's Income Related Monthly Adjustment Amount This Year, What Should I Do?
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In this episode, Rusty answers a question from someone who took a large withdrawal from his IRA, resulting in a higher Medicare premium for both he and his wife, and wonders if he’ll be stuck with the higher premium forever.
Dear Rusty: My wife and I file our taxes jointly. In 2024, I took an IRA Required Minimum Distribution (RMD) which was significantly more than I was required to take. My Medicare premiums were not affected in 2025, and our Social Security payments were not reduced. Then, our joint filing in 2025 kept us below the IRS’ “Modified Adjusted Gross Income (MAGI) level. Yet in 2026 our Medicare payments increased and our Social Security payments were reduced.
If my MAGI is below the maximum for 2025, will my regular SS payments/Medicare reductions be restored in 2027? Is there any action I need to take to ensure this will happen, or will our Medicare payments and reduced SS payments be our new norm? Signed: Worried Retiree
Rusty’s answer in brief
A large 2024 IRA withdrawal pushed the couple’s income over the IRMAA threshold ($218,000 for joint filers under the 2026 rules), so their 2026 Medicare Part B and Part D premiums went up. Because premiums are deducted from Social Security, their net payments went down. Medicare sets each year’s premiums from the tax return filed two years earlier.
It corrects itself. 2027 premiums are based on 2025 income, so if that income was below the threshold, both spouses automatically return to the standard premiums. No action is needed.
This recording presents the viewpoints of the AMAC Foundation’s Social Security Advisory Staff, trained and accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). NSSA and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government. To request additional information, contact our Advisory Staff at 888-750-2622, or email us at SSAdvisor@AmacFoundation.org.