Tag Archives: Means Testing

IRMAA Letter, Worse than a “Dear John”, but WE have Solutions!

Last week we discussed the coming big article in our Q1 2018 Newsletter concerning the new Medicare Tiers and Means Testing. In that article we discuss the income levels that will trigger higher premiums.

If you have been targeted of higher means, you will receive an IRMAA letter! You have been IRMAATized

IRMAA Letter

Short for Income Related Monthly Adjustment Amount –

Definition – You have been Mean’s Tested and the Social Security Administration (SSA) is asking you to pay more for Medicare Premiums.

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The SSA is likely looking at your income from two years ago.

Good News- There is a solution if this is an unusual income amount or you have had a life changing event. This SSA Form 44 from the SSA is what you will need.

Life Changing Events According to SSA:

  • Marriage
  • Divorce/Annulment
  • Death of Your Spouse
  • Work Stoppage
  • Work Reduction
  • Loss of Income-Producing Property
  • Loss of Pension Income
  • Employer Settlement Payment

There are literally check boxes with these subjects in it. Of course life has curve balls that may not allow you to “Check the Box” … We have had continued success with folks going to the SSA office and presenting their case directly to the agent.

We would suggest the timely but productive visit if there is anything out of the ordinary with your proving of “Life Changing Event”!

Bring Proof

“ I understand that signing this form does not constitute a request for SSA to use a more recent tax year information unless it is accompanied by:

  • Evidence that I have had the life-changing event indicated on this form;
  • A copy of my Federal tax return; or
  • Other evidence of the more recent tax year’s modified adjusted gross income”

This information is stated just before a signature section on the SSA Form. Heed the warning and bring whatever proof in order to speed processing.

There you have it … many more options to correct the situation than a “Dear John” letter!

Have a Great “Non IRMAATized” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

Medicare Part B Means Testing New Thresholds/ Surcharges for 2018

In our coming Q1 Newsletter we have a terrific detailed review of the background of Medicare, the newer means testing and what to expect in 2018.

In timely fashion, thanks to the nice work of a noted studious professional in our industry, Michael Kitces … the following chart shows the income thresholds and surcharges to take effect in 2018.

 

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These resource thresholds have been lowered dramatically, scooping in more families than in past years. Again, full discussion coming in our Q1 Newsletter.

If you are on Medicare, take a moment to scan these numbers, it worth our time!

Bottom line, a higher income year for a joint couple could result in a $503 (A means surcharge of $369) monthly Part B premium EACH … eeek !

We will discuss planning ideas to help alleviate this and also what to do if you incorrectly may have been targeted for this type of surcharge premium!

All about timing and control of income!

Have a great “Medicare Controlled Surcharge” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com