How to Protect Your Social Security From IRMAA Surcharges

Brad and Paul discuss the impact of Income-Related Monthly Adjustment Amounts (IRMAA) on retirees, highlighting how unexpected financial events—such as selling a business, receiving an inheritance, or required minimum distributions (RMDs)—can push individuals into higher Medicare premium brackets, even if they are not wealthy. With over 9 million retirees receiving IRMAA letters in 2024, totaling $23.4 billion in surcharges, the conversation underscores the lack of awareness and planning among financial professionals and retirees. They emphasize the importance of early tax planning strategies like Roth conversions and long-term care funding to prevent Social Security reductions and higher Medicare costs. A real-life case illustrates how a retired teacher, unaware of IRMAA's impact, saw her Social Security benefit reduced to zero after her spouse’s passing.