Do not let your Modified Adjusted Gross Income (MAGI) get over $170K, your Medicare premiums will go up for a minimum of two years. We just learned that today from our financial advisor, details here:

https://www.ssa.gov/pubs/EN-05-10536.pdf

There's no way our pensions and SS get us close to $170K, but we've been drawing $$ from our IRA (non-Roth) to fund lots of international travel and it's taxable income. Right now we pay $134/month each for Part B premiums, page 5 of the link shows how much it wwould increase up with MAGI over $170K. And we'd be stuck with this for two years before we can appeal! I'm not an expert (not even close), that's why we have a financial advisor.

This article addresses the issue and other Medicare concerns:

https://www.fedsmith.com/2018/...planning-retirement/

I miss JALLEN already, I know he could explain this better.

I can't comment on this exactly. But my current monthly premium for health care is $3000+. So if medicare (when I get there) charges me $3000 more per year because I'm liquidating my IRA in a given year for some reason and exceed the $170K I would be happy as underneath I don't have that 3K.
Win win as they say.

I'm safe.

Good to know. I'm in a somewhat odd position where I can draw IRA cash now, but I'm not eligible for medicare for several years. We're not yet ready for the big travel spending, so I will talk to my broker about withdrawals now to accrue funding and move it to taxable accounts. Thanks!

A variation of this happened to me when I retired at age 70. They came to me and said they had looked at my tax return from two years ago and were going to charge me the higher amount. I argued that my income was now greatly reduced from two years ago. They relented and kept me at the lower amount. Guess I dodged the bullet.

Sounds like a first world problem: your income’s too high so you’ll have to pay a surcharge on top of a $134 monthly bill for Medicare B. Not exactly a real pressing problem to have!

If my annual income is over $170K I will be happy to pay the increase.

Yes, this has been going on for some time. It is a sneaky way of increasing taxes on those that have worked hard. I expect to see more of this sort of thing.

I suffer that big extra charge. Medicare Part B costs me $300+/mo. Part D is more too. But it’s a “grin and bear it” situation.

Go out and buy private insurance and see what it costs you.