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Avraham "AY"  Rappaport, CLTC

President, Financial Professional


Yaniv "Jay" Natanov

President, Financial Planner


Eli Rappaport

Vice President, Financial Planner


Shlomo Rosenstein

Financial Professional


Ozzie Marizan

Financial Planner


Joseph Greer

Employee Benefits Administrator


Dylan Pinsky

Client Relations Manager


Premier Financial

6395 Dobbin Road, Suite 102

Columbia, MD 21045


Phone:  240-309-6001




May/June 2023

Will Your RMDs Trigger Medicare Surcharges?

RMD word on white notepad with stethoscope on yellow background

Since you started working, you were probably told about the benefits for saving as much as possible in your employer's tax-deferred retirement plan. Your taxable income is reduced by the amount you contribute. And your savings has the potential to accumulate tax-free until you're ready to withdraw it in retirement.

But why didn't anyone tell you about IRMAA?

What Is IRMAA?
IRMAA is an acronym for income-related monthly adjusted amount, and it’s the bane of Medicare recipients who’ve amassed substantial savings in pretax retirement accounts. Once you begin taking required minimum distributions (RMDs) from your 401(k) or other tax-deferred accounts, the amount you’re required to withdraw may push your income above the Medicare base limit and trigger higher premiums, in the form of a surcharge, on Parts B and D.

How Much Higher?
The monthly Medicare premium for individuals and married joint recipients is $164.90. Surcharges on monthly premiums begin with a modified adjusted gross income (MAGI) over $97,000 for individuals and $194,000 for married couples. Monthly premiums, including surcharges, start at $230.80 and rise incrementally to $560.50 with income greater than $500,000 for individuals and $750,000 for couples. Medicare premiums are deducted from your Social Security benefit before you receive it.

One Solution: A Roth IRA
Consider shifting some of your money to a Roth individual retirement account. You contribute after-tax dollars, but withdrawals are tax-free once you reach age 59½, if you’ve owned the account for at least five years. However, there are no required withdrawals from a Roth IRA. The 2023 contribution limit is $6,500, or $7,500 if you’re age 50 or older. Single and head-of-household filers with MAGI of $138,000 or less and married joint filers with MAGI of $218,000 or less can contribute up to the limit. The ability to contribute to a Roth IRA phases out for single and joint filers with incomes over $153,000 and $228,000, respectively.

HSA Contributions
If you participate in a high deductible health plan (HDHP), consider contributing to a health savings account (HSA). Contributions are tax deductible and withdrawals are tax free when used to pay medical expenses.



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Premier Financial is not affiliated with Prudential Financial. Premier Financial sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Premier Financial is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Premier Financial and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Dylan Pinsky is employed by Eli Rappaport and not The Prudential Insurance Company of America or its subsidiaries.
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