How changes in income affect your Medicare premiums

Dear Toni: I began taking required minimum distributions from my 401(k) when I turned 72, and my Medicare premium in 2024 is $454.20 for Part B and $53.80 for Part D. Did taking my RMDs with my Social Security check raise my Medicare premiums? My wife, Karen, was working last year and made about $250,000. Are both of our incomes used to determine my Medicare premium?

Also, Karen was laid off from her job in September, so our joint income has changed drastically. How do I let Medicare know that my income level has changed? — Joseph, Tulsa, Okla.

Dear Joseph: Yes, taking your RMDs at 72 can raise your Part B and D premiums. Many Americans do not realize that Medicare premiums can go up based on an increase in modified adjusted gross income when you jointly file your federal tax return. Medicare bases your premiums on you and your spouse’s income, even if one of you is under Medicare age.

Your RMDs and Social Security check combined with your wife’s income of $250,000 raised your Medicare premiums. The 2024 Part B premium of $454.20 and $53.80 for Part D tells me that your joint income in 2024 was in the $322,001-to-$386,000 range.

But since your wife is no longer earning a salary of $250,000, you can file an appeal with Social Security to have your Parts B and D premiums reduced.

To do so, file form SSA-44 (Medicare Income-Related Monthly Adjustment Amount — Life-Changing Event) with Social Security. You can find it at ssa.gov/forms. Examples of life-changing events that can lower your reported modified adjusted gross income include:

■ You have gotten married or divorced or your spouse has died.

■ You or your spouse have stopped working or have reduced your hours.

■ You or your spouse lost an alternate income source (i.e., income-producing property or pension income).

Fill out form SSA-44 and attach original documents or certified copies to verify your change in income. Once Social Security is satisfied with the evidence, it will update its records and correct your Part B and Part D premiums to reflect your current income.

In 2024, if your income as an individual is over $103,000, or over $206,000 as a married couple, your Parts B and D premiums will be higher. Social Security mails you a letter explaining how it arrived at the Part B and D premiums based on your last filed tax return.

Toni King is an author and columnist on Medicare and health insurance issues. If you have a Medicare question, email info@tonisays.com or call 832-519-8664.