Economics Matters with Laurence Kotlikoff

The IRMAA Tax Is Coming For You with Mark Annese and Dan McGrath

Nov 16, 2023

Learn about the impact of IRMAA tax on retirement and Social Security benefits, possible costs ranging from $2K to $7K per year, and strategies to limit IRMAA payments. Explore expert insights on navigating Medicare premiums, financial modeling, RMDs, and tax considerations. Discover tactics for fund optimization, income management, and avoiding the IRMAA tax using certified planner resources.

45:03

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Episode guests

Mark Annese

Dan McGrath

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Episode notes

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Quick takeaways

IRMAA tax is based on income from 2 years ago and can cost retirees $2K to $7K annually.

Utilizing Roth IRAs and life insurance can help mitigate IRMAA tax impact on retirement finances.

Deep dives

Understanding Irma and its Impact on Medicare

Irma, a reference for the progressive Medicare premium formula, introduces a complex tax structure that determines premiums based on modified adjusted gross income from two years earlier. This system, discussed by experts Dan McGrath and Mark Nese of Irma Certified Planters, aims to educate financial professionals on mitigating Irma's effects on retirement. By strategically using assets like Roth accounts and life insurance, individuals can potentially avoid escalating Irma surcharges and secure their Social Security benefits.

Introduction

3min

Navigating IRMAA Tax for Retirees: Educating Financial Professionals

8min

Navigating Medicare Premiums and Financial Modeling

5min

Navigating RMDs, Medicare Irma Brackets, and Tax Considerations

15min

Navigating Medicare Costs in Retirement

5min

Strategic Retirement Fund Optimization for Tax Mitigation

3min

Strategies for Retirement Income Optimization and Financial Security

2min

Explaining IRMAA Tax in Relation to Medicare Plans

2min

Strategies to Avoid the IRMAA Tax and Certified Planner Directory

2min

It's time to about the IRMAA Tax, a.k.a. Medicare Income-Related Monthly Adjustment Amount, which is simply a tax by another name that is assessed when you join Medicare Part B or Medicare Part C. It's based on a special measure of Modified Adjusted Gross Income two years back in time.

Professor Kotlikoff talks with Dan McGrath and Mark Annese, the founders of IRMAA Certified Planner, an IRMAA certificate program for planners with specialized software that can be used to reduce your IRMAA payments. Mark and Dan are the experts with all the secrets. Topics discussed:

How the costs associated to health care are impacting investors’ retirement and Social Security benefits.
What you don’t know about IRMAA will hurt you and can cost you anywhere from almost $2K to $7k per year.
There are ways to limit your IRMAA tax.

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