Retiring as you start Medicare: avoid a first-year IRMAA
By Elder PaperworkUpdated
Short answer
Your first Medicare premium uses income from 2 years ago, often from your working years.
Retirement is a work stoppage. Form SSA-44 lets you report the drop in income.
Step 3 of the form covers a drop you expect next year.
Sources: Social Security, Medicare premiums; Form SSA-44 (12-2025); POMS HI 01120.005. Read November 4, 2026.
Key facts
Why might I pay IRMAA in my first year?
Social Security uses the latest return the IRS gives it. For 2026, generally tax year 2024.
If you were still working then, that income can be well above what you live on now.
Does retiring count as a life-changing event?
Yes. Social Security lists retirement as an example of a work stoppage.
When can I ask?
At any time after the event. The new decision can’t start before the event year.
If the drop only shows up next year, a request made now takes effect next January.
See what you could save, before you pay.
Check my savingsWhat if my income drops only next year?
Form SSA-44 Step 3 is for a drop you expect next year.
You give your estimated income and filing status. Later, you send your signed return.
Questions
Do new Medicare enrollees get IRMAA?
They can, if their income from 2 years before is above the limits.
Can I report a drop I only expect?
Yes. Step 3 of Form SSA-44 covers next year’s expected income.
When does a lower premium start?
Not before the event year. For Part B, January or your first month of Part B.