Appeal Your IRMAA Extra Medicare Costs and SAVE THOUSANDS

Learn how to appeal your IRMAA (Income-Related Monthly Adjustment Amount) extra Medicare costs with Mr. Retirement.

If you’re nearing or already in retirement, you may have heard of IRMAA—but most people haven’t heard about it until it shows up as a surprise deduction from their Social Security check. IRMAA stands for Income-Related Monthly Adjustment Amount, and it can significantly increase your Medicare Part B and Part D premiums based on your income.

Here’s the kicker: IRMAA is based on your income from two years ago. So you could retire and see your income drop dramatically, only to find out you’re still being charged based on your pre-retirement salary. That’s why understanding how IRMAA works—and how to fight back—is so important.

What Is IRMAA and Why It Matters

When Social Security calculates your Medicare premiums, they don’t look at your current income. Instead, they use your modified adjusted gross income (MAGI) from two years ago. That’s the last full tax year the IRS has on record.

Let’s say you earned $200,000 in 2023, retired in 2024, and your income dropped to $60,000. In 2025, Social Security will still use your 2023 income to determine whether you owe IRMAA. You may suddenly find your Medicare premiums have jumped by hundreds—sometimes thousands—of dollars per year.

That’s why so many retirees feel blindsided. But there’s good news: if your income has legitimately dropped due to a qualifying life-changing event, you can appeal IRMAA.

How to Appeal IRMAA

The process starts with the SSA-44 form, formally titled the Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event form. You can find it on SSA.gov.

Here’s what you’ll need:

1. A qualifying life-changing event. The SSA accepts eight specific reasons:
   
   • Marriage
   • Divorce or annulment
   • Death of a spouse
   • Work stoppage (retirement)
   • Work reduction (partial retirement)
   • Loss of income-producing property (like rental damage)
   • Loss of pension income
   • Employer settlement payment (e.g., one-time severance)
     
2. Proof of the event. This can be a retirement letter, divorce decree, death certificate, or other documentation. You’ll also need to estimate your current and future income.
   
3. Completed form and submission. Fill out the SSA-44 and mail it with your documentation to your local Social Security office. You can also make an in-person appointment, which can speed up the process.
   

What Doesn’t Count as a Life-Changing Event?

Not everything qualifies for an IRMAA appeal. If you had high income because of a Roth conversion or sold investments, you’re likely stuck paying the higher premium for now. But this is where planning comes in.

How to Plan Ahead and Avoid the IRMAA Shock

If you’re planning a Roth conversion, selling a business, or taking large distributions, make sure you understand how it could push your MAGI into IRMAA territory. For 2025, IRMAA surcharges begin at:

• $106,000 for single filers
  $212,000 for married couples filing jointly
  

Even a single dollar over the threshold can move you into the next bracket. And those brackets aren’t soft—one penny too much, and your monthly premiums jump by $74 or more.

Use Tax Planning Tools to Avoid Surprises

This is where working with a retirement-focused financial advisor may make a difference. At Keil Financial Partners, we use tax planning software to help clients forecast income and identify potential IRMAA risks before they happen.

We consider:

• Roth conversions
• Capital gains
• RMDs
• Pension income
• Social Security start dates

…and how all of those can potentially impact not just your taxes, but your Medicare premiums.

Don’t Be a Victim of IRMAA

Many retirees don’t expect Medicare to cost them an extra few thousand dollars per year. But it can—and it often does—without warning. With a little knowledge and planning, you can potentially avoid that surprise and even appeal those higher costs if they don’t match your current financial reality.

So where can you start with your IRMAA situation? Here is one idea:

• Review your income and see if you’re near an IRMAA threshold.
• If you had a qualifying life change, download and complete the SSA-44 form.
• Include proper documentation and send it to Social Security.
• Work with a financial advisor to make tax and income decisions that may help prevent excessive IRMAA costs before they hit.

Longtime listeners of my podcast “Retirement Revealed” know the phrase, but managing your IRMAA falls right in line with our core mission: get more retirement income, pay less in taxes and avoid big retirement mistakes.

Links:

• Sign up for Social Security: www.ssa.gov 
• Social Security and Work: How Much Can You Make in 2025? 
• Supercharge your Social Security Benefit with These 5 Tips 
• Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event form: https://www.ssa.gov/forms/ssa-44.pdf 

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