A $300,000 capital gain in 2024 could raise Medicare premiums by $483 monthly for single retirees starting in 2026.
Retirees face higher Medicare premiums in 2026 due to a two-year lookback rule on capital gains. A $300,000 gain in 2024 could increase monthly premiums by $483, or $5,796 annually, for single filers, with married couples paying double.
The surcharge, known as IRMAA, applies regardless of whether the proceeds are spent. Social Security denies appeals for one-time capital gains, allowing adjustments only for life events like marriage, divorce, or job loss. Retirees often overlook the rule until premium notices arrive.
Financial advisors recommend spreading asset sales across tax years, using installment sales, or contributing to donor-advised funds to mitigate the impact. Modeling Medicare costs before large sales is critical, as the surcharge locks in once reported.