Modified Adjusted Gross Income
I am trying to determine how much I can withdraw from my IRA without exceeding one of the Medicare limits for income, which would increase my required premium. This Medicare premium is based on my Modified Adjusted Gross Income (MAGI). Would someone be able to tell me if MAGI includes the 15% untaxed portion of my Social Security benefit? I believe I only have to add my Tax Exempt interest to my AGI to get MAGI and not add the 15% of Social Security Income that is not taxed.
Thank you for your help!
Permalink Submitted by Alan - IRA critic on Wed, 2023-11-22 22:40
You are correct that MAGI for IRMAA purposes does include tax emempt interest, but not the untaxed portion of your SS benefit. That said, your MAGI for 2023 will determine whether you owe IRMAA for 2025, two years later. The IRMAA tiers are adjusted for inflation, therefore the 2025 tiers should be somewhat higher than they will be for 2023 or 2024.
Permalink Submitted by William Tuttle on Thu, 2023-11-23 03:23