Ask The Hammer: What Qualifies As a Life-Changing Event and How Will That Affect IRMAA?

Key Takeaways

• File Social Security Form 44 when you retire to report a life-changing event—this simple form can reduce your Medicare Part B and Part D premiums by having Social Security use your new lower income instead of income from 2 years prior
• Medicare Part B and D premiums are based on your income from 2 years prior, not your current year income, so someone turning 65 in 2024 needs to manage their 2022 income to avoid overpaying premiums
• Time your Roth conversions to occur in the same year you retire, then include your retirement as the qualifying life-changing event on Form 44—the conversions alone don't qualify, but retirement does
• Include supporting documentation (employment termination letter, pay stubs, etc.) when submitting Form 44 to increase approval likelihood, and know that you have multiple appeal opportunities if Social Security initially denies your reduction request
• If Social Security cannot access your most recent tax return due to processing delays, they may look back further than 2 years, so plan accordingly and provide clear income projections on Form 44