Inherited 401(k) Distributions Can Trigger Delayed Medicare Premium Increases
A widow in Ohio faced a significant increase in her monthly Medicare Part B premium due to income from inherited 401(k) distributions two years earlier. The delayed impact is caused by Medicare's two-year lookback period for determining the Income-Related Monthly Adjustment Amount (IRMAA). This case highlights how one-time retirement account withdrawals can lead to unexpected surcharges.
Topics: Inherited 401(k) IRMAA surcharge Medicare premiums Retirement accounts