I’m about to go on Medicare, but I had big capital gains last year. How long will I be stuck paying IRMAA surcharges?

Core Points - Medicare sets premiums based on income from two years prior, affecting individuals who experience significant income changes [3][4] - The Income-Related Monthly Adjustment Amount (IRMAA) applies to individuals with income exceeding $106,000 for single filers starting in 2025, with additional charges ranging from $74 to $444 per month [4] - Enrollment timing in Medicare can influence the duration of higher premiums, with potential for only eight months of increased payments if income decreases in the following year [2][5] Group 1 - Medicare premiums are determined by income from two years prior, which can lead to higher costs for individuals with capital gains [3][4] - The IRMAA surcharge begins at $106,000 for single filers, with a tiered pricing structure for additional charges [4] - Individuals enrolling in Medicare mid-year may only face higher premiums for part of the year, depending on their income situation [2][5] Group 2 - It is crucial for individuals to be aware of the two-year lookback rule to avoid unexpected IRMAA surcharges [6] - Timing of income realization, such as capital gains, can significantly impact future Medicare costs [6]