Retirees face $5,600 in annual Medicare premium surcharges due to capital gains from property sales reported two years prior.
Retirees selling property in 2024 are facing Medicare premium surcharges exceeding $5,600 in 2026 due to a two-year lookback rule. The Income-Related Monthly Adjustment Amount (IRMAA) uses modified adjusted gross income from tax returns filed two years earlier to calculate current-year costs.
A married couple with a $210,000 taxable gain and $130,000 in other retirement income could see combined surcharges apply, even if the gain was a one-time event. Medicare treats such gains as recurring income, inflating premiums for Part B and Part D.
The Social Security Administration confirms that 2024 tax returns, filed in early 2025, will determine 2026 premiums. Financial advisors warn retirees may be caught off guard if they fail to account for the delay.