08/20/2026
I’M RETIRED. WHY DID MY MEDICARE PREMIUM GO UP?”
A client came into our office with that exact question.
He had already retired.
One year, he needed money and withdrew approximately:
$100,000 from a retirement account.
During that same year, he also sold a rental property.
At the time, he was thinking about taxes.
He was NOT thinking about Medicare.
Two years later, he received a notice from Social Security.
His Medicare premiums were higher because of IRMAA.
He looked at me and said:
“KimAnh, I’m retired. Why are they charging me more?”
That is when we discussed the Medicare two-year lookback.
A large taxable withdrawal from a Traditional IRA or 401(k) can increase taxable income.
Selling rental property may also produce taxable capital gain and, depending on the property, depreciation-related tax consequences.
When several large taxable events happen in the same year, your MAGI can increase enough to affect future Medicare IRMAA.
He said something I hear often:
“If I had known, I would have asked before doing everything in the same year.”
That is the lesson.
Before taking a large IRA withdrawal, doing a Roth conversion or selling investment property, don’t only ask:
“How much tax will I owe?”
Also ask:
“Could this affect my Medicare premiums two years from now?”
Sometimes the transaction still makes financial sense.
Sometimes accepting one year of IRMAA is part of a larger strategy.
The important thing is to know before you act, rather than finding out from a Medicare notice two years later.
KimAnh Insurance & Tax
8142 West Lane, Suite 120
Stockton, CA 95210
(209) 662-4158
General Medicare and tax information only. Taxable gains, retirement distributions and IRMAA depend on each person’s individual circumstances. Consult the appropriate tax or financial professional before making major financial decisions.
