How do I lower my Magi for Irmaa?
Asked by: Mariana Funk | Last update: September 29, 2025Score: 4.1/5 (46 votes)
How to lower irmaa income?
- Selling a home.
- Taking a required minimum distribution (RMD)
- Converting traditional IRA assets to a Roth IRA.
- Realizing a large investment or capital gain.
- Winning the lottery (yes, it's true!)
How can I reduce my Magi?
Selling taxable investments at a loss can help reduce your MAGI. This is because capital losses offset capital gains, which in turn reduces your total income subject to taxes. The key here is balancing between realizing profits from selling high-performing assets versus claiming losses on underperforming ones.
Do IRA contributions reduce magi for Irmaa?
A deductible IRA contribution will always reduce MAGI for the purpose of Medicare IRMAA. MAGI for Medicare IRMAA is AGI (Form 1040 line 11) plus tax exempt interest (line 2b).
Do Irmaa brackets ever go down?
IRMAA is re-evaluated every year as your income changes. If your higher income two years ago was due to a one-time event, such as realizing capital gains or taking a large withdrawal from your IRA, when your income comes down in the following year, your IRMAA will also come down automatically.
How to Avoid IRMAA the Right Way! | Medicare IRMAA Calculation Explained
Can I get out of Irmaa?
If you've experienced a life-changing event, you can ask the Social Security Administration to reduce or eliminate your IRMAA amount by completing and submitting Form SSA-44.
How is Magi determined for Irmaa?
IRMAA is based off of what is called your Modified Adjusted Gross Income, or MAGI. This can be confusing to calculate or find because it is not a specific line item on your tax return. To calculate MAGI for Medicare IRMAA, take your AGI and add tax-exempt interest.
Can I deduct Irmaa on my taxes?
Is IRMAA Tax Deductible? Yes, IRMAA surcharges are deductible as part of the medical expense deduction (as are other Medicare expenses).
Do Roth IRA withdrawals count toward Irmaa?
Roth IRA withdrawals are generally tax-free. These tax-free withdrawals can enable you to avoid taking taxable withdrawals from other accounts, which, in turn, can help you avoid an increase in your IRMAA.
What if my Magi is too high?
However, those with modified adjusted gross incomes (MAGIs) above certain levels are limited in the amounts they can contribute or are banned from Roth ownership altogether. The income limits are updated annually. Taxpayers with incomes above those top numbers cannot contribute anything to a Roth IRA.
Do health insurance premiums reduce magi?
No. Pre-tax deductions — such as health insurance premiums, retirement plan contributions, or flexible spending accounts — are taken out of wages by the employer. Since this income isn't taxed, it doesn't count towards a household's MAGI.
Do donations lower Magi?
AGI and MAGI are calculated before any itemized deductions, such as charitable contributions, are applied. Itemized deductions do not reduce AGI or MAGI under any circumstances.
What is the two year rule for Irmaa?
The Social Security Administration (SSA) determines if you owe an IRMAA based on the income you reported on your IRS tax return two years prior, meaning two years before the year when you pay the IRMAA. For example, Social Security would use tax returns from 2024 to determine your IRMAA in 2026.
Does 401k affect magi?
While 401(k) contributions reduce your Adjusted Gross Income (AGI) since they are made with pre-tax dollars, they are not added back when determining your MAGI. This means your 401(k) contributions lower your AGI and, consequently, your MAGI.
Can I get an Irmaa refund?
Can you get a refund on Irmaa Medicare? Yes, if you've paid more than the standard Medicare Part B premium, an IRMAA refund can be applied for.
How do I get Irmaa reduced?
Fill out the Medicare Income-Related Monthly Adjustment Amount-Life-changing Event (SSA-44) (PDF) form. Fax or mail your completed form and evidence to a Social Security office.
How to reduce magi for Medicare?
You can further minimize your Modified Adjusted Gross Income (MAGI) by utilizing tax-efficient investments in your plan-vanilla brokerage accounts. In a brokerage account, you pay taxes on interest, dividends, and gains realized in the current year.
What is the extra standard deduction for seniors over 65?
For 2024, the additional standard deduction amounts for taxpayers who are 65 and older or blind are: $1,950 for Single or Head of Household (increase of $100) $1,550 for married taxpayers or Qualifying Surviving Spouse (increase of $50)
How to avoid irmaa?
Delay making withdrawals from your tax-deferred retirement accounts. This can keep you below the IRMAA limit and allow your savings to grow. Additionally, once you're required to start taking required minimum distributions (RMD) at age 73, you have the option to donate up to $100,000 per year to a qualified charity.
How do I figure out my magi?
MAGI is adjusted gross income (AGI) plus these, if any: untaxed foreign income, non-taxable Social Security benefits, and tax-exempt interest. For many people, MAGI is identical or very close to adjusted gross income. MAGI doesn't include Supplemental Security Income (SSI).
Does everyone have to pay $170 a month for Medicare?
Most people pay no premiums for Part A. For Medicare Part B in 2025, most beneficiaries will pay $185 per month. Certain factors may require you to pay more or less than the standard Medicare Part B premium in 2025.
How to calculate magi for irmaa 2024?
According to Social Security your MAGI is the total of your adjusted gross income (AGI) and any tax-exempt interest you may have. Both of these can be found on lines 2a and 11 of your 2022 IRS tax form 1040.
Does Irmaa apply to both spouses?
Find information about 2025 Part D IRMAA here. *Important: If both the husband and wife are on Medicare, each will pay the adjustment.
What income level triggers Irmaa?
People with Medicare who earn a high income have to pay an IRMAA, an extra charge on Medicare Parts B and D. The fee kicks in if you make more than $106,000 (up from $103,000 in 2024) or if you and your spouse collectively earn over $212,000 (up from $206,000 in 2024).