If you sell assets such as stocks or real estate, ti can increase your income and sequentially increase your Medicare Part B premiums. The premiums for Part B are based on your income, so if you sell assets the resulting possible increase in your income might push you into a higher income bracket, resulting in higher premiums.
The increase in your income from selling assets may not have an immediate impact on your Part B premiums. The premiums are based on your income from two years prior, so fi you sell assets in 2023, it will not affect your premiums until 2025. However, it is important to plan for the potential increase in premiums when making decisions about selling assets.
There are some strategies that you can use to minimize the impact of selling assets on your Part B premiums. For example, you may be able to spread the sale of assets over several years to avoid a large increase in income in a single year. Additionally, you may be able to make charitable contributions or contribute to a retirement account to reduce your income and lower your Part B premiums.Not all assets are treated equally for Part B premium purposes. Some assets, such as Roth IRA distributions, are not counted as income for Part B premium calculations.
For more information on this topic, Enrique Perez, . A . can be contacted at (760) 772-2007 Enrique Perez, E.A. is a federally authorized tax advisor and practitioner empowered by the U.S. Department of Treasury.