Medicare is means tested based on income. Medicare Part B and Part D require higher income earners to pay higher premiums for their plan. If you have Part B and/or Part D benefits (which are optional), your premiums will be based in part on your reported income level from two years prior.
This means that your Medicare Part B and Part D premiums in 2022 may be based on your reported income in 2020.
Thanks for that chart
Since I am nowhere near $97,000 AGI, I never knew this.
Just chalk it up to the ignorance of a former wage slave. lol
The chart that you posted actually shows the Medicare premiums for 2023 based on 2021 income. Note the premiums are based on Modified Adjusted Gross Income not taxable income.
Here's a link to the CMS.gov website.
Thanks for posting.
So how would this work in the following scenario.
2023 - Rebuilding house - taking out $200,000 from 401(k) - not taking S.S. still working - Job + 401(k) paying taxes
2025 - starting to take S.S. Over 68yr. - Would Part B costs be effected ?