Avoiding IRMAA Isn’t the Goal — Living Well Is
When retirees first hear about Medicare’s Income-Related Monthly Adjustment Amount—the dreaded “IRMAA surcharge”—the focus often becomes how to avoid it. After all, no one wants to pay more than necessary for Part B and Part D premiums.
But at Longevity Income Solutions, we believe that managing IRMAA is just one small piece of a much larger picture. The real goal isn’t simply lowering premiums; it’s designing a financial and care plan that keeps you in control of your life—today and in the years ahead.
What IRMAA Really Tells You
IRMAA charges are based on your modified adjusted gross income (MAGI) from two years prior. If your income rises—perhaps from a Roth conversion, capital gains, or a one-time distribution—your Medicare premiums may increase.
Many articles, like a recent one from ThinkAdvisor, outline strategies to reduce or avoid these surcharges:
- Qualified charitable distributions (QCDs)
- Roth conversions
- Timing Social Security benefits
- Managing taxable income and investment sales
All of these are smart financial moves. But they only go so far if they’re made without considering what your health, lifestyle, or care needs might look like down the road.
The connection between care, money and life
We often see families making tax-efficient decisions in isolation, only to discover later that those moves limit flexibility for care, housing, or support when health changes.
A Financial Care Plan takes the long view. It coordinates financial strategy with personal priorities and future care needs so that every decision—whether a Roth conversion or a home renovation—supports both your finances and your independence.
Four Ways to Think Bigger Than IRMAA
- Plan Two Years Ahead—At Least.
IRMAA looks back two years, so this year’s income decisions affect next year’s costs. We help clients project how withdrawals, conversions, or asset sales will impact their total plan—so there are no surprises. - Use QCDs with Purpose.
Charitable giving through your IRA can reduce taxable income and shrink future required minimum distributions, keeping your plan flexible for care spending later in life. - Integrate Roth Conversions Into Your Broader Care Strategy.
A well-timed conversion can reduce lifetime taxes and future RMDs—but timing it within a health and lifestyle plan ensures you’re not triggering extra costs just before care expenses rise. - Coordinate Your Income Streams.
Balancing withdrawals from traditional, Roth, and taxable accounts can keep you in your preferred IRMAA bracket while maintaining the cash flow needed for the life you want to live.
Beyond Surcharges: Protecting Peace of Mind
Avoiding a surcharge may save a few hundred dollars a year. Having a plan that anticipates your care, income, and family dynamics can save far more—in stress, uncertainty, and loss of choice.
At Longevity, we help families look past isolated tax tactics to create integrated plans that protect both assets and autonomy. Because true financial health isn’t about what you keep—it’s about how well you live.
Ready to See the Full Picture?
If you’re approaching Medicare age—or already navigating the system—now is the perfect time to align your financial and care plans.
Download our free Financial Care Plan Overview to understand how proactive, whole-person planning can help you stay in control of your future.