Depends if there’s an asset limit.
Part B or some other?
Are you getting a subsidy?
The sale of real estate can indeed affect Medicare premiums due to the Income-Related Monthly Adjustment Amount (IRMAA). When a property is sold, the capital gains from the sale are included in the Modified Adjusted Gross Income (MAGI) calculation for Medicare premiums. If the MAGI exceeds certain income thresholds, it can lead to higher Medicare premiums for both Part B and Part D.
Capital Gains: The profit from the sale is considered income and can increase your MAGI.
MAGI Calculation: Medicare premiums are adjusted based on MAGI from two years prior.
IRMAA Impact: Higher MAGI can trigger higher IRMAA, leading to increased Medicare premiums.
It is important to report significant life events like selling a home to the Social Security Administration to avoid penalties and to explore Special Enrollment Periods (SEPs) for adjustments to Medicare coverage. Consulting with a financial planner can help manage the impact of a home sale on Medicare premiums.
Probably because in their twisted logic a cap gain turns into income for the Modified Adjusted Gross Income. Welcome to IRMA. Another penalty for being successful.
You may also get hammered when it comes time for RMD.
Curious thing about that. You will have to pay tax on the RMD as regular income but you can’t also use that event to roll it over into a Roth. That is a separate event that is taxes as another regular income event. But since it is additional regular income it is taxed at another an yet higher rate.
$106,000 for single filers and $212,000 for joint. This includes tax exempt income as opposed to AGI. That’s the first step up and there are several more at higher income levels.
Any high income causes the premiums to skyrocket for two years. Had a client that it cost him and his wife over $16,000 per year each for 2 years.
The income-related monthly adjustment amount (IRMAA) applies to individuals with modified adjusted gross incomes exceeding $109,000 and couples exceeding $218,000.
The IRMAA is calculated on a sliding scale with five income brackets, topping out at $500,000 for individual filing and $750,000 for married, filing jointly. These figures, except for the top bracket, are inflation-adjusted annually. For 2026, these inflation-adjusted brackets range from $109,000 to $205,000 for single tax filers and $218,000 to $410,000 for joint filers.
IRMAA calculations have a two-year lag. Whether you pay an IRMAA in a given year depends on your tax returns from two years ago.
In other words, your 2026 IRMAA liability is based on your MAGI from 2024.
My clients Medicare Part B premiums went to $690 per month for each husband and wife or $1,380 for both. It costs them $16,560 per year for Medicare Part B!
This was due to liquidating some stock.
The sale of rental units, which results in capital gains, impacts Medicare premiums through the Income-Related Monthly Adjustment Amount (IRMAA) system.
IRMAA increases Medicare Part B and Part D premiums based on an individual’s Modified Adjusted Gross Income (MAGI) from two years prior.
Therefore, if rental units were sold in 2024, the capital gains from that sale will be reported on the 2024 (in reporting year 2025) tax return and will affect the 2026 Medicare premiums.
This means the individual would pay a higher Medicare premium for 2026 due to the one-time income spike from the sale.
While a one-time event like a property sale is not considered a "life-changing event" by Social Security, which could trigger a reassessment, individuals can still request a reconsideration by filing and providing documentation of the sale.
If successful, the premium increase could be adjusted for the following year. (Which I assume they mean year 2027)
So, I guess you should file Form SSA-44 now to make sure that you do not carry that same increase into 2027.
Hope that helps, if not blame AI. 😁🤙
If you have more money, you should not need as much government assistance. Isn’t that what being a conservative is all about?
thanx for posting
I pay a chunk of my paycheck for a medicare premium. Then they deduct another premium from my Social Security. SS has been double dipping from me since I turned 65. I’ll likely have to quit working when I turn 73 because I won’t be able to afford the taxes.
One of the great promises of the USA was equality before the law. Our political/lawyer class killed that long ago.
DOGE, can we have a look at CMS?
They did it to Mr.GG2’s sister and BIL a couple of years ago. They were screaming like stuck pigs about it.
Medicare Part B premium is based on filing status and Modified Adjusted Gross Income (MAGI). MAGI is the Adjusted Gross Income (AGI) + non-taxable social security + tax exempt interest.
The capital gain will could cause the Medicare Part B premium to increase. It will also cause the taxable Social Security to increase if you are receiving Social Security benefits. The capital gain will be taxed at the capital gain tax rate instead of ordinary rate if held for more than 1 year.
See the 2026 Medicare Part B premium chart in this link:
https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
The Ordinary and Capital Gain tax brackets are based on taxable income and not MAGI.
See the 2026 Capital Gain tax brackets in this link:
https://www.fidelity.com/learning-center/smart-money/capital-gains-tax-rates
Just BigGov reminding you it’s a welfare system and you are the chump paying for it.
For your next trick, try converting some money from a regular IRA to a Roth.
You get the idea. If you find some loose change under the couch cushions, don’t report it.
Dumb Bush signed it into law in 2003
President George W. Bush signed the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) into law on December 8, 2003, which created IRMAA (Income-Related Monthly Adjustment Amount) for higher-income beneficiaries, although it didn’t take effect until 2007. This landmark legislation added prescription drug coverage (Part D) and introduced income-based adjustments for Medicare Part B premiums, reducing government subsidies for wealthier enrollees.
IRMMA stands for Income-Related Monthly Adjustment Amount, a surcharge higher-income Medicare beneficiaries pay for Parts B (medical) and D (prescription drug) premiums, based on their income from two years prior (e.g., 2023 income for 2025 premiums), calculated by the Social Security Administration (SSA) using Modified Adjusted Gross Income (MAGI) to ensure richer enrollees contribute more. It’s an income-tested adjustment, not a penalty, applied on a sliding scale, affecting beneficiaries whose MAGI exceeds certain thresholds, with the SSA sending notices and collecting it via deductions from Social Security or direct billing.
Key Aspects of IRMMA:
Applies To: Medicare Part B and Part D.
Based On: Your Modified Adjusted Gross Income (MAGI) from your tax return two years prior (e.g., 2023 MAGI for 2025 premiums).
Income Thresholds: Higher MAGI leads to higher IRMMA surcharges.
Administration: The Social Security Administration (SSA) determines who pays and sends notices.
Collection: Deducted from Social Security checks or billed directly.
Why It Matters:
Increased Costs: Can significantly raise monthly Medicare costs for higher earners.
Planning: Understanding IRMMA helps retirees plan for potential higher premium costs in retirement.
Roth IRAs: Distributions from Roth IRAs do not count towards IRMMA, making them a useful tool for avoiding these surcharges.
In essence, if your income was high two years ago, you’ll likely pay more for Medicare Part B and D in the current year.
IRMAA
In the House vote on final passage (Nov 22, 2003), 220 total voted “aye.”
Most of those ayes were Republicans: by historic reporting, virtually all but 19 Republicans supported the bill.
42 Republican senators voted “aye” on the final passage.
By disclaiming my mom’s IRAs so that they pass to us children (thereby removing her RMDs), and reducing interest income by funding 529 accounts for the great-grandchildren his Medicare will drop a bit to 405.80, and tax savings will be about $20k this year and next combined.
Medicare deductions from your Social Security are based on your Modified Adjusted Gross Income (MAGI).
I believe MAGI includes capital gains.
I know it includes Muni Bond Interest.