IRMAA APPEAL....DENIED??!!!

[CliffC861540]

How about this twist?
We just started Medicare January 2025
We got hit with IRMAA because our 2023 MAGI was too high
HOWEVER, I retired in 2023 (life changing event - work stoppage) and our MAGI for 2024 and going forward will be below IRMAA limits
I filed SSA 44 documenting my retirement and providing below IRMAA MAGI estimates going forward.
I just recvd a letter denying my appeal.
I called my local SSA office.
I was told even though I retired in 2023, it is irrelvant because my 2023 MAGI was too high. I asked her to clarify this 3 times
WTF? I thought the whole point of a SSA 44 appeal was to solve this situation and eliminate / reduce IRMAA due to reduced income.
What am I not getting?
I asked for an in perosn appt to have this explained to me and she said no, there is no point I will only tell you the same thing
I said it is my right to have an appt and I demand one.
My appt is in two weeks.

What am I not understanding?

[CliffC861540]

UPDATE - In the hopes of speaking to a different SSA agent I tried calling my local office one more time before my February appointment. It worked. I wasn't crazy. Every thing was properly filled out. She immediately processed my SSA 44 over the phone and removed my IRMAA. The first lady was simply incompetent and likely a DEI hire who is now hopefully on her way to the unemployment office where she can be tortured by other govt employees not unlike herself. The circle of life is complete.

[GailL1]

@CliffC861540 

Since I don’t know what your TY 2023 income showed or when you retired in 2024, or how you reported your retirement on form SSA-44, I can’t really say specifically what the problem might be.

They are using your tax return for (2) years back to determine your IRMAA rate.  That is the last tax return to which they have access if you filed according to the regular schedule.  If you had an extension on your 2023 tax returns, they would be using one that is another year back - whatever the last one that the IRS has processed.  

On your 2023 Tax Return was there any tax deferred retirement money that was distributed to you?  This also counts as income and this is based on a MAGI so other income outside of just your job earnings are considered.

Work Stoppage is one of the life changing event - meaning retirement but is there anything else on the tax return that increased your MAGI to the IRMAA level?

An IRA conversion to a ROTH also counts as income - I am mentioning that one since many seniors seem to overlook it.  

You might just read over these AARP and Kiplinger articles to see if there is anything else that might apply to you that could trigger an increase in income for TY 2023.

AARP.org - updated 11/13/2024 - 7 Ways You Can Avoid Higher Medicare Premiums 

Kiplinger.com - Appealing the IRMAA for Medicare Parts B & D 

If you care to share more about your TY2023 MAGI, we can see if we see anything else that could make your appeal fail.  

On the other hand, SSA is going through a difficult period and they have lots of new people in training - so IF you don’t see anything on your tax return that would be adding to this 2023 income, keep the appointment and take your documentation along with the SSA-44.  

[CliffC861540]

As I said, I retired in 2023. Not 2024.

Yes there was also tax defrerred retirement income in 2023. This is included in MAGI 

Yes I was over IRMAA in 2023. 

My total MAGI ( which includes retirement distributions) is under IRMAA for 2024 and 2025.

The issue is my SSA rep said my 2023 retirement does not affect IRMAA BECAUSE my 2023 MAGI is over IRMA.  This makes no sense to me.  

[RobertK725031]

I have a similar situation. I retired in June 2023; my 2023 Income was high.  I began Medicare in 2024 and my income was low.  I submitted all of the required info on form SSA-44 and met with representatives at SS. They adjusted my 2024 premiums so that there was no IRMAA throughout 2024, until Dec 2024.  I recently received a huge IRMAA invoice for 2024 which seemed to use my 2022 income (invoice more than $5,000).  I called many times and I either got a no answer or a convoluted response that made no sense.  I have made many calls and left vm, with no response. They did however reduce my 2025 amount, which also makes no sense as that would be based on 2023 income. I was essentially forced to pay the $5,000+ invoice or I would be terminated.

[GailL1]

@RobertK725031 

Was there any other type income of great amount on your 2022 tax return?  Like:

• an IRA,  401K or any other tax deferred retirement distribution
• did you convert any retirement account funds to a ROTH account in that year and thus had to pay taxes on that amount.
• what about any earnings that were also connected to your employment - like a bonus, back pay, vacation or sick pay or any other type of deferred compensation.
• Did you sell your house or any other asset to which capital gains were assessed.

Without know what type of income was on your 2022 YR return, we can only guess as to why they assessed you such a large amount.  

If you filed a MFJ return, the income of your spouse also counts.

CMS.gov - 2024 Medicare Premium rates 

From your comments, it just sounds like in your case there is something (some income type) on that 2022 tax returns (or the one they are using to assess the 2024 IRMAA amount) other than just your earned income.  From your comments, it sounds like it would be a pretty big amount.  But I am having to guess because you aren’t giving any details.  

[BalbonisMoleskine]

Now imagine that you're decades from retirement. Would you vote for candidates and tax increases that prop up such a system? Or would you rather have it eliminated so you can save and control your money when you need it?

[GailL1]

That’s the year that the 2025 IRMAA calculations are based on - (2) years before because that is the tax return that they normally have access to for the coming year IRMAA charges.

If your income is lower for TY 2024 - your IRMAA premiums will either be removed or lowered depending on your MAGI for 2024 - so in 2026, your MAGI for TY2024 might not indicate an IRMAA.

Sounds like you had salary + tax deferred retirement distribution in 2023 so if you were over the IRMAA MAGI in 2023, you get an IRMAA tax surcharge in 2025.