IRMAA 2018

[kgmom219]

Question for the old guys (you know who you are)...

If the tax plan gets through, which changes up IRMAA, do they implement it ASAP? Or will it be for 2019? (Yes, I seriously got this question today)

 

[TN_agent]

Jeez. About the same as the "what am I going to do when (if) they get rid of Obamacare?" that I get daily. I can't answer how hypothetical laws still in the debate phase will be administered. I always say, once they pass it, call me back a week later and I will have the answer for you. Until then, I can't advise you on something that may never become law. A waste of your time during AEP to look up minutiate of regs that may be lining a Senator's garbage can soon.

 

[WCMason]

Question for the old guys (you know who you are)...

If the tax plan gets through, which changes up IRMAA, do they implement it ASAP? Or will it be for 2019? (Yes, I seriously got this question today)

I could easily see getting this exact question from a client. It seems like every time something is mentioned on Fox News that remotely, tangentially, possibly someday might be related to Medicare I will get at least one phone call about it.

My answer: if you’re high income and changes in the tax code cause your MAGI to go down you may pay less for Medicare two years after that tax year. If those changes cause your MAGI to go up, you may pay more for Medicare two years after that tax year. Whether those changes will cause your MAGI to go up or down is a question for your tax preparer.

 

[kgmom219]

Thanks WC!

Their question was "if the tax plan goes through, which adds another layer to IRMAA, do I have to pay the extra money right away or will they wait til January 2019?"

This guy is at $700K, AGI isn't going to move. He KNOWS he is paying it. He just wants to know when.

I gave him my standard: "I have no idea what Congress is going to do, but I'm monitoring it closely. And I promise to let you know when the Speaker of the House calls me to discuss the tax code"

 

[WCMason]

Thanks WC!

Their question was "if the tax plan goes through, which adds another layer to IRMAA, do I have to pay the extra money right away or will they wait til January 2019?"

This guy is at $700K, AGI isn't going to move. He KNOWS he is paying it. He just wants to know when.

I gave him my standard: "I have no idea what Congress is going to do, but I'm monitoring it closely. And I promise to let you know when the Speaker of the House calls me to discuss the tax code"

If by “new layer of IRMAA” you mean the lowering of the income brackets at the top IRMAA levels, that was passed in the 2015 MACRA legislation for 2018 implementation (same bill that will be removing Plans C and F for new Medicare benificiaries in 2020). It’s not a new law—only new in its enforcement—and not related to any new tax proposals.

 

[kgmom219]

What they are telling me (I swear 90% of my clients watch Fox all day long) is that $320K isn't going to be the max level. There's going to be a new level, above the $320K. As in "$500K means $500 a month for Part B" (I'm paraphrasing)

 

[WCMason]

What they are telling me (I swear 90% of my clients watch Fox all day long) is that $428K isn't going to be the max level. There's going to be a new level, above the $428K. As in "$500K means $500 a month for Part B" (I'm paraphrasing)

$428K is not going to be the new top level. It’s going down to $320K for those filing jointly, $160K for individual filers. There is no new level, there’s a reduction in the income required to hit the top level, which would be $504 when you include the Part B and D IRMAA surcharges.

 

[kgmom219]

DAMNIT. Its still 2017 right? I don't have to know the numbers for next year?

The letters went out this week, BTW. Since I'm sitting here with nothing to do and the phone is exploding with "Why am I paying more?"