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Since RMD is not required in 2020, that should lower my client's AGI under the 85K limit. How can I request Social Security to reduce the premium? I have done that in the past when a client retired, when I could prove income will decrease, but I can't remember how I did it. Any advice?
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You can't file for a change due to "decreased income"; it is only for a "life changing event". See the top of page 2 of Form SSA-44:
https://www.ssa.gov/forms/ssa-44-ext.pdf
But in a couple of years, they will look at your client's lower income and decrease the premium based on that year's AGI. If your client's income goes back up, so will the Medicare premium the next year.
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Thank you!
Very helpful.
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It's a 2-year lookback for IRMAA. Reduced income in 2020 won't be used until Medicare year 2022. The new limit is $87,000.
https://www.medicare.gov/your-medicare-costs/part-b-costs
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Just a thought. Could you use the "Loss of Income-Producing Property" life event? I believe the intent of Congress to grant the choice in RMD this year was the volatility in the stock market. This would be beyond the taxpayers control. In my experience, if the SS-44 is documented properly to show that the income has been or will be reduced in the current or upcoming year, the SSA will reduce the IRMAA. It works best if the client makes an appointment with the local SSA office. Don't know if they are having face-to-face meetings now but maybe they can work with someone local.
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It's not beyond the taxpayer's control to exercise the option to skip RMD this year. That isn't a permanent loss of income producing property; congress isn't keeping them from their funds. I was told by a local Aging Services rep that Traditional IRA conversions to Roth that affect IRMAA can be appealed, but another person told me that is not a successful appeal. You can appeal anything with a provision for appeals, of course.
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