Frequently asked questions
What is IRMAA?
The income-related monthly adjustment amount: a surcharge added to your Medicare Part B and Part D premiums once your income passes a threshold. It is not a tax on the extra income, it is a step. One dollar over a bracket costs the whole step for the year, which is why it is worth knowing where the lines are before a conversion or a large capital gain.
Which year's income sets my Medicare premium?
The return filed two years earlier. Your 2026 premium is set by your 2024 income. That two-year lag is the reason IRMAA surprises people, and also the reason a conversion done before age 63 avoids it entirely.
Can an IRMAA surcharge be appealed?
Yes, if your income dropped because of a life-changing event that Social Security recognises: retirement or reduced work hours, the death of a spouse, marriage or divorce, loss of a pension, or loss of income-producing property. File form SSA-44 with documentation. A conversion you chose to make is not a life-changing event and cannot be appealed.
Is it better to claim Social Security at 62, at full retirement age, or at 70?
Claiming early permanently reduces the benefit; waiting past full retirement age increases it by roughly 8% a year until 70. The break-even is usually in the late 70s or early 80s, so the honest answer depends on health, on whether you are still working, and on whether a spouse will inherit the larger benefit as a survivor.
Does working while claiming reduce my benefit?
Before full retirement age, yes: the earnings test withholds part of the benefit above an annual limit. It is withheld, not lost. Once you reach full retirement age the benefit is recalculated upward to account for what was withheld, and the earnings test stops applying.
When do I have to sign up for Medicare?
Around your 65th birthday, during a seven-month initial enrollment window. Missing it can mean a permanent late-enrollment penalty on Part B and Part D. Still being covered by a large employer's group plan is the main exception that lets you delay without penalty.