Correcting IRMAA assessment

[pogo]

In 2022, I enrolled a man in a MAPD as he turned 65. He's not collecting SS benefits yet, so he's been paying his Part B premium quarterly.

Now 67yo, he just received a letter saying that he suddenly owes IRMAA for income in the $193k-$499k range and due on 9/24. When I talked with him, he said that his 2022 income was less than $60,000. His income has been below the IRMAA triggering level throughout 2020-2023, as shown on his tax returns.

What is the process for correcting an error in assessing IRMAA? Filling in a SSA-44 was my first thought, but this situation doesn't seem to fit. Call SSA? Or perhaps submitting a SSA-44 with the 2023 tax return is a simpler solution?

What could trigger a mid-year notification of IRMAA when it's based on the tax return from 2022?

TIA

 

[Truce]

Something doesn't add up here. The staff at the local offices have the authority to approve the appeal, and that's the route that seems to work the fastest for my clients. He should show up with a payment for the amount due, in addition to his tax returns and other documents to prove his income.

 

[ValeRosso]

That's odd. Have you personally seen the tax returns? I've had cases where someone said they were below the amounts, but when checking the return personally they were over. Not sure the cause, but SSA-44 would be a fix or like Truce said go locally.

 

[Special Agent]

In 2022, I enrolled a man in a MAPD as he turned 65. He's not collecting SS benefits yet, so he's been paying his Part B premium quarterly.

Now 67yo, he just received a letter saying that he suddenly owes IRMAA for income in the $193k-$499k range and due on 9/24. When I talked with him, he said that his 2022 income was less than $60,000. His income has been below the IRMAA triggering level throughout 2020-2023, as shown on his tax returns.

What is the process for correcting an error in assessing IRMAA? Filling in a SSA-44 was my first thought, but this situation doesn't seem to fit. Call SSA? Or perhaps submitting a SSA-44 with the 2023 tax return is a simpler solution?

What could trigger a mid-year notification of IRMAA when it's based on the tax return from 2022?

TIA

i recently enrolled my sister in law in a plan and i knew they were at the top tier of irmaa but they got SS statement say it would be only 174.70 then a month later they got the SS statement saying the owed the top tier amount.They filed an extension for taxes in 2022 so not sure if that had anything to do with it

 

[Allen Trent]

In 2022, I enrolled a man in a MAPD as he turned 65. He's not collecting SS benefits yet, so he's been paying his Part B premium quarterly.

Now 67yo, he just received a letter saying that he suddenly owes IRMAA for income in the $193k-$499k range and due on 9/24. When I talked with him, he said that his 2022 income was less than $60,000. His income has been below the IRMAA triggering level throughout 2020-2023, as shown on his tax returns.

What is the process for correcting an error in assessing IRMAA? Filling in a SSA-44 was my first thought, but this situation doesn't seem to fit. Call SSA? Or perhaps submitting a SSA-44 with the 2023 tax return is a simpler solution?

What could trigger a mid-year notification of IRMAA when it's based on the tax return from 2022?

TIA

Are you sure he didnt sell some taxable assets in 2022? My mom was a small shareholder of a company she worked for. Went from an income of $80k to looking like she made $450k in the year the company sold out because of the taxable distributions on her tax return that year. She owed the max medicare premiums the following year, then they went back down thereafter. Same would happen if someone took a large Annuity or IRA distribution or sold off shares of stocks, etc. Before you go too far, ask for a copy of their tax returns for those years in question before spending a bunch of time on "correcting an error" that may not be an error.

Maybe a rollover or 1035 exchange occurred that should have been a tax free rollover but it got misread by IRS/others as a taxable distribution

 

[pogo]

Thanks for your replies! I meet with him later today where I will see the letter and his tax returns. I’ll report back how this turns out.

 

[pogo]

Update: From his tax return, I saw that he sold his house in 2022, with a capital gain that pushed him well into IRMAA territory. He just happened to notice it now although he’s been paying it since Jan 2024. Mystery solved.