If you are paying IRMAA, you may have grounds to appeal that premium, if you experience a life-changing event. The following events qualify as life changing:
- Death of a spouse
- You or your spouse stop working or reduce your hours
- Loss of pension
- Involuntary loss of income-producing property due to a natural disaster or other circumstances
If you meet any of these criteria, then you would file a Medicare premium appeal, using the form available on HHS.gov.
If you are not receiving Medicare yet, you should consider implementing the following planning strategies for when you do receive benefits:
- Delay social security.
- Qualified Charitable Distributions – Make charitable contributions from your IRA to reduce required IRA distributions and hence lower your income.
- Tax Location – Hold lower income-producing funds/securities in taxable accounts, and higher income-producing assets in a retirement account.
- Traditional IRA to Roth IRA conversions – Reduce your IRA balance, effectively reducing your future required distributions and therefore lowering your income.
Keep in mind that these strategies can’t be used in isolation; they have to be looked at in terms of a multi-year financial plan. Your Bluerock Wealth managers can help you assess that plan.
As always, let us know if you have any questions!