Quick Read – The Social Security Fairness Act restored full benefits for millions of public workers but can push retirees past the $109,000 IRMAA threshold. – Crossing the IRMAA cliff by even $1 raises Part B premiums from $203 to $284 monthly, plus a $15 Part D surcharge. -…
th conversions and Qualified Charitable Distributions up to $105,000 annually are the two tools to shrink MAGI before RMDs begin at 73. – Susan is 69, retired three years ago after running an elementary school, and until recently she thought her retirement math was settled. She draws a $64,000 state teacher pension, sits on a $980,000 403(b), and now receives a Social Security check that is larger than the one she penciled in during her planning years
Why? The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which historically shrank Social Security benefits for public employees with non-covered pensions, were repealed under the Social Security Fairness Act. Educators who spent careers watching their projected benefits get chopped by roughly 60% or more suddenly saw the full amount land in their bank account.
That’s great, but it can trigger a Medicare premium hike. The extra Social Security, stacked on top of her pension and 403(b) withdrawals, pushed her modified adjusted gross income past the first IRMAA threshold. Her Part B premium jumped and her Part D premium got a surcharge.