Part 2: Legal Ways to Reduce Your IRMAA in 2026 — Smart MAGI Strategies

📉 Legal Ways to Reduce Your IRMAA in 2026 — Smart MAGI Strategies

Many retirees are surprised when their Medicare premium jumps due to IRMAA — the Income-Related Monthly Adjustment Amount. The good news? IRMAA is not permanent.
With the right MAGI strategies, you can often reduce or eliminate IRMAA legally. This 2026 guide explains how IRMAA works and the practical ways to lower your income
for Medicare purposes.

1️⃣ How IRMAA Works (MAGI Basics)

IRMAA is based on your MAGI (Modified Adjusted Gross Income) from two years earlier. This means your 2024 income determines your 2026 Medicare premiums.

MAGI for Medicare = AGI + tax-exempt interest + foreign income exclusions.

2️⃣ 7 Legal Ways to Reduce Your IRMAA

Here are the most effective IRMAA-reduction strategies for 2026:

• 1. Delay Social Security to delay automatic Medicare Part A
  — Gives more years to do Roth conversions at low brackets.
• 2. Time capital gains over multiple years
  — Avoid pushing MAGI into a higher IRMAA tier.
• 3. Use Qualified Charitable Distributions (QCDs)
  — Lowers taxable income for those over age 70½.
• 4. Reduce RMD impact through Roth conversions
  — Smaller RMDs = lower MAGI in future Medicare years.
• 5. Limit dividends, interest, and realized gains in taxable accounts
  — Shift to more tax-efficient investments.
• 6. Manage annuity payouts or pension elections
  — Choose distribution timing that keeps MAGI stable.
• 7. Use HSA distributions wisely before Medicare age
  — Reduces taxable withdrawals later.

3️⃣ IRMAA Reconsideration (Form SSA-44)

If your income dropped due to a major life change, you can request that Social Security
recalculate your IRMAA.

Qualifying life events include:

• Retirement or work stoppage
• Loss of income-producing property
• Marriage, divorce, or death of a spouse
• Pension reduction

Submit Form SSA-44 with proof of your new income to have your IRMAA reduced
retroactively.

4️⃣ Example — How MAGI Planning Saves Real Money

🔗 Helpful Links

• Form SSA-44 — Medicare Income Adjustment Review
  
• Medicare Costs (Medicare.gov)
  

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