One of the most common tax traps in retirement is surcharges on Medicare premiums. This is more formally known as the income related monthly adjustment amount or IRMAA. Medicare Part B premiums are based on a taxpayer’s income. As your income increases, you run the risk of being subject to IRMAA which can result in thousands of dollars in additional annual premiums. Although this seems straightforward, retirees often get snagged in this tax-trap because they forget that retirement account withdrawals usually increase gross income. Additionally, the way the calculation works, being just one dollar over a threshold can trigger IRMAA. In this video we talk about common scenarios that trigger IRMAA and several planning strategies which can help to manage or even completely avoid it.