Medicare's two-year lookback treats a one-time home sale gain as recurring income, spiking Part B premiums for retirees who enroll at 65.
A single filer with MAGI above $500,000 pays $689.90 monthly for Part B alone, up from the standard $203, plus extra Part D surcharges.
The IRMAA surcharge is temporary, but timing the home sale outside the two-year Medicare lookback window can prevent it entirely.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
The scenario is common enough that Medicare planners have a name for it: the IRMAA cliff. A homeowner sells her longtime residence at 63, walks away with a large capital gain, and files a tax return that looks nothing like her usual retirement income. Two years later, when she enrolls in Medicare at 65, the Social Security Administration reaches back to that inflated return and prices her Part B and Part D premiums as if she earns that much every year. In reality, the gain was a one-time event, while the surcharge lingers.
#gain #irmaa #time #sale
A single filer with MAGI above $500,000 pays $689.90 monthly for Part B alone, up from the standard $203, plus extra Part D surcharges.
The IRMAA surcharge is temporary, but timing the home sale outside the two-year Medicare lookback window can prevent it entirely.
Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
The scenario is common enough that Medicare planners have a name for it: the IRMAA cliff. A homeowner sells her longtime residence at 63, walks away with a large capital gain, and files a tax return that looks nothing like her usual retirement income. Two years later, when she enrolls in Medicare at 65, the Social Security Administration reaches back to that inflated return and prices her Part B and Part D premiums as if she earns that much every year. In reality, the gain was a one-time event, while the surcharge lingers.
#gain #irmaa #time #sale
5 days ago
