Send us Fan Mail Episode Description You did everything right. You saved aggressively, earned well, maybe converted to Roth or sold a property. Then two years into retirement, a letter arrives from Social Security: your Medicare premiums are going up, sometimes by thousands of dollars a year, per person. Your income is lower now. So why the surcharge? Because IRMAA, the income-related monthly adjustment amount, isn't looking at your income now. It's looking at your tax return from two years ago. It's a cliff, not a ramp: one dollar over a threshold triggers the full surcharge for an entire year, and it's charged to each spouse separately. In this episode, Hazel Secco, CFP®, CDFA®, fee-only fiduciary and founder of Align Financial Solutions, breaks down why the bill arrives two years late, which of your smartest financial moves are the very things that trigger it, and what you can still do about a number that was set two years ago (including the form most retirees are entitled to file and never do). What You'll Learn What IRMAA is and why the two-year look-back makes it feel like an ambushWhy the surcharge is a cliff, not a ramp, and why a single dollar of income can cost you thousandsThe number Medicare actually watches (MAGI, and yes, your tax-free municipal bond interest counts)This year's approximate threshold lines: ~$109,000 (single) and ~$218,000 (married filing jointly). Always recheck for your own year.The five triggers hiding in your best moves: your last big working years, required withdrawals (RMDs at 73 or 75 depending on birth year), Roth conversions, large one-time sales, and the widow's penaltyThree moves that put you back in control: watching the line before year-end, sizing Roth conversions to fit under the brackets, and appealing with form SSA-44 after a life-changing event like retirement or the death of a spouseTwo extra tools that lower the number: qualified charitable distributions (from age 70½) and choosing which capital gains you realize, and whenChapters 00:00 The Two-Year Ambush01:41 What IRMAA Really Is02:05 The Three Sneaky Features02:55 Thresholds and MAGI Math04:14 Five Common Triggers05:50 Widows and the Penalty06:32 Three Ways to Respond07:16 Conversion and MAGI Tools08:16 Appeal with SSA-4408:44 Key Takeaways and Next StepsThree Things to Write Down The surcharge is set by your tax return from two years ago, steps up in blocks rather than smoothly, and is charged to each spouse separately, so the planning has to happen two years before the bill.The triggers are the things you did right: your last big work years, required withdrawals, Roth conversions, a large one-time sale, and for a widow, the move from joint thresholds to single ones.You have more control than the letter suggests: watch the line before year-end, size conversions to fit under it, and if you've retired or lost a spouse since that tax year, file the SSA-44.Question for You Which of the five triggers did you see yourself in: the last big work years, required withdrawals, Roth conversions, a one-time sale, or the widow's penalty? Tell me in the comments. The fix is slightly different for each one, and your answer tells me what to make next. 📝 Free Retirement Readiness Assessment → https://alignfinancialsolutions.com/retirement-readiness-assessment 📞 Book a free Align Call → https://calendly.com/alignfinancialsolutions/align-call?utm_source=podcast Follow the Conversation: LinkedIn: https://linkedin.com/in/hazel-seccoInstagram: https://instagram.com/alignfinancialsolutionsAbout Hazel Secco, CFP®, CDFA® Hazel Secco, CFP®, CDFA®, is the founder of Align Financial Solutions, a fee-only fiduciary firm in Hoboken, New Jersey, that helps high-net-worth women bring retirement, equity compensation, tax, and estate planning into one plan. Disclaimer: All content in this podcast is for educational and informational purposes only and does not constitute individual investment, legal, or tax advice. Investing involves risk. Always consult with a qualified professional regarding your specific situation. The above case study is hypothetical and does not involve an actual Align Financial Solutions client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if A...
