Can Beginning RMDs Raise Your Medicare Premium?

Dear Toni,

I am 73 and began taking my RMDs from my 401K when I turned 72. Could this have increased my Medicare Part B premium? This year, my Parts B and D monthly premiums increased to $329.70 for Part B and an extra IRMAA premium of $31.50 for Part D.

I am married and my wife began a new job in 2021 with a higher salary. Since we are filing jointly, could this have increased my Medicare premiums? My wife was just laid off and joint income has changed drastically overnight. What can I do?

Thank you,
James from Pearland, TX

James,

People believe that everyone pays the same amount for their Medicare Parts B and D, but those days are long gone! So, your answer is, yes, definitely. Taking your RMDs (required minimum distributions) at 72 and your wife starting a job in 2021 could have absolutely raised your Medicare Parts B and D premiums.

The average American does not realize that any increase in your MAGI (modified adjusted gross income) when you are filing jointly can increase your Medicare premiums. Medicare bases your premiums on both your and your spouse’s income whether one is of Medicare age or under. Your RMDs combined with your wife’s increased income have raised your premiums.

What can you do about your high Medicare premiums?

I have good news for you, James. Since your wife is no longer employed and earning that higher salary, you can file an appeal with Social Security to have your Medicare Parts B and D reduced. Your premiums are based on your modified adjusted gross income (MAGI) from your last filed tax return. If you don’t file an appeal, your premium won’t change for another two years, when Social Security receives that information from the IRS.

There is a special form, SSA-44 (life-changing event), available at ssa.gov that can lower your income-related monthly adjusted income (IRMAA). Examples of life-changing events that can make your income go down are marriage, divorce, the death of a spouse, a decrease in hours worked, or the loss of a job. Fill out form SSA-44 and attach any relevant original documents or certified copies to verify your change in income.

Chapter 8 of the Medicare Survival Guide, Advanced edition consists of the Social Security forms needed to enroll in Medicare properly.

Open a Medicare.gov Account

The first thing you need to do is create an account on Medicare.gov. This account is your go-to resource for managing your Medicare premiums and other benefits.

What You Can Do on Medicare.gov

• Pay your premiums with a credit card, debit card, bank account, or Health Savings Account (HSA).
• Monitor your claims and see what Medicare has paid for.
• Check your Part A and Part B coverage dates.
• Print your Medicare card.

Opening an account is simple, and once it’s set up, you’ll have access to a variety of helpful tools.

Set Up Medicare Easy Pay

Medicare Easy Pay is an automatic payment system that deducts your monthly premium directly from your bank account. While it’s a convenient option, keep in mind that it can take 60 to 90 days for Medicare to process your Easy Pay enrollment. In the meantime, you’ll need to pay your premiums manually.

When Payments Can Be Deducted Automatically

Once you begin receiving Social Security benefits, your Medicare premiums will automatically be deducted from your monthly Social Security check. If you’re not yet receiving Social Security (whether because you haven’t reached full retirement age or you’re delaying benefits) manual payments or Easy Pay will be your primary options.

More Medicare Resources

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