Retired Last Year? Can SSA-44 Lower Your Medicare Surcharge?

After a qualifying work stoppage, Form SSA-44 may lower your 2026 Medicare surcharge. At $290,000 of 2024 income, this single-filer example faces $6,355.20 in annual Part B and Part D surcharges. If Social Security accepts a $90,000 estimate for 2026, the example saves up to $6,355.20 over 12 months. A one-time gain alone does not qualify.

The example household

All figures below illustrate one person enrolled in Medicare Part B and a Part D drug plan. They are not a premium quote or a promise that SSA will approve an application.

For this model, the person receives both Part B and prescription coverage. The calculation adds the IRMAA surcharge to the standard Part B premium and to the person’s own Part D plan premium. It does not count a late-enrollment penalty, coinsurance, deductibles, or a Medicare Advantage reduction.

Why a recent retirement can matter now

IRMAA means income-related monthly adjustment amount. It is an extra amount added to Medicare Part B and Part D premiums for people above the income threshold. SSA generally uses a tax return from two years earlier. The agency uses the most recent information it can get from the IRS.

That delay creates a timing problem. A person may have earned a large salary two years ago but now live on much less. A later tax return may eventually show the lower income. A qualifying work stoppage can let the person ask SSA to use more recent income sooner.

The route for that request is a new initial determination, commonly filed with Form SSA-44. Retirement or work stoppage is among SSA’s listed life-changing events. The applicant must show both the event and the lower income. SSA can request a tax return, employer documentation, a statement about the work separation, or other evidence listed in its form instructions.

An appeal is different. If the notice used incorrect tax information, the wrong filing status, or the wrong calculation, ask SSA about reconsideration. SSA says the reconsideration request is due within 60 days after receipt of the determination notice. The appeal route challenges the decision. SSA-44 asks for a new determination based on a qualifying life event and more recent income.

You can contact SSA about both issues if both apply. Do not treat an appeal and Form SSA-44 as the same request. Tell SSA that work stopped and income fell. If the notice used the wrong tax year or amount, say so. Ask which request fits and what proof to submit.

The 2026 income year and surcharge

The 2026 schedule uses 2024 income, or 2023 if 2024 information is unavailable. For a single filer, the first IRMAA threshold is above $109,000. At $290,000, the example falls in the bracket above $205,000 and below $500,000.

In that band, SSA lists a $446.30 monthly Part B adjustment and an $83.30 monthly Part D adjustment. The Part B standard premium is $202.90. The total Part B premium is therefore $649.20 per month before any other adjustment.

The Part D amount is added to the plan premium. It is not the total drug plan bill. If the plan charges $35 a month, the simplified total would be $35 plus $83.30, or $118.30. The plan can change its own premium and benefits.

The last column multiplies the monthly Part B and Part D surcharge by 12. It does not add the standard Part B premium or the base Part D plan premium. Those costs remain even after an IRMAA surcharge is removed.

Four outcomes for this retiree

The second row shows a change for all 12 months of Part B and Part D coverage. Form SSA-44 Step 2 tells you which income year to estimate. For a 2026 request, use estimated 2026 MAGI if it is lower than 2025 MAGI. This applies even if income first fell in 2025 and is expected to fall again in 2026. If 2026 MAGI is not lower, use 2025 tax information. This example assumes 2025 MAGI is above $90,000 and estimates 2026 MAGI at $90,000. The exact 2025 amount is not assigned. After a qualifying life change, SSA generally makes a new decision effective January 1 of the request year. If Part B starts later, the change generally begins on that enrollment date. A different rule may apply if income will fall next year. Do not prorate by retirement month. Check SSA's effective-date rules for your enrollment and event dates.

The fourth row needs careful handling. SSA’s procedures distinguish a challenge to an existing decision from a request to use more recent income after a qualifying event. If the IRS record itself is wrong, contact the IRS to correct it, then give SSA the corrected return or documentation it accepts. If the determination is still wrong, request reconsideration within the notice deadline. If the old IRS figure is accurate but income fell after work stopped, ask for a new initial determination with Form SSA-44. The agency decides which record and procedure apply; neither route guarantees a revised premium.

What the number does and does not mean

The $6,355.20 is a surcharge estimate for one calendar year. It is not the full amount of Medicare premiums, and it is not automatically refunded. The Part B standard premium remains due. Your Part D plan premium remains due. Your own plan and enrollment choices determine other costs.

If a household has two Medicare beneficiaries, each person’s premium may reflect household MAGI and filing status. This example covers one beneficiary only. If both spouses have Medicare, calculate the adjustment for each covered person. Do not multiply one person’s amount without checking each person’s enrollment and billing.

The tax year is also important. If 2024 MAGI was $290,000 but retirement lowered 2025 income, the 2025 return would normally be the two-year lookback input for 2027. As of October 27, 2026, the 2027 Medicare handbook is available, but its Part B section still gives 2026 premiums and income limits. CMS has published 2027 Part D plan-pricing information; that is not the beneficiary Part D IRMAA surcharge schedule. SSA has not published the 2027 beneficiary IRMAA table, so the exact 2027 surcharge and savings cannot be calculated from official figures yet. The $6,355.20 figure below is strictly a 2026, 12-month maximum under the 2026 table; it is not a multi-year forecast.

Which year can each request change?

The routes answer different questions. A qualifying work stoppage can support an SSA-44 request to use a more recent income estimate for the current premium year. Incorrect IRS information calls for correcting the source record and supplying proof; if the resulting SSA determination remains wrong, reconsideration challenges that decision. The two routes can both matter if both facts apply.

The $6,355.20 maximum compares the current example's surcharge with no surcharge at $90,000 MAGI. It assumes all 12 months change. For fewer months, the calculator multiplies the monthly difference by eligible months. SSA decides the start date and eligible month count. The 2027 amounts remain unknown because SSA had not published its 2027 surcharge table as of October 27, 2026. CMS's Part D plan prices are not the beneficiary surcharge amounts. A 2027 result also depends on the estimate and SSA's decision. We cannot calculate a 2027 or multi-year total yet. Later savings might occur if SSA accepts a lower estimate or updated tax information lowers the surcharge. They are not guaranteed or quantifiable now.

The Medicare IRMAA calculator can model the surcharge arithmetic; it does not submit Form SSA-44, decide eligibility, or appeal a notice.

Plan for the cash flow while SSA reviews the request. Keep paying the amount shown on your current bill unless SSA sends a revised notice. If the adjustment later changes the amount owed, keep the revised determination and compare it with each premium deduction. A request is not the same as an approval, and an approval is not the same as a posted refund.

When you submit a tax estimate, write down the income sources you expect to receive for the rest of the year. Include wages earned before retirement, severance, pension distributions, interest, dividends, taxable gains, and any other income that may affect adjusted gross income. The list is a planning tool, not a substitute for SSA's definition. Use the return or form instructions to calculate the actual figure.

The timing can also affect household decisions. Do not sell an asset just to move below a threshold without calculating the tax and investment effects. A realized gain may increase income for an IRMAA year even when the sale funds a major purchase. A tax professional can compare the gain, tax basis, and expected Medicare adjustment before you act.

If the notice shows the wrong filing status, check whether SSA received the correct tax return. Married beneficiaries who file separate returns can face a different table. A person who married, divorced, or lost a spouse may have a listed event and a changed filing status. Bring the official documents and ask SSA how both the event and tax status affect the determination.

When does a one-time gain count?

A high income year from selling a business, exercising stock, or selling property can raise MAGI. It can also push a Medicare beneficiary into a higher surcharge bracket. The IRS tax return includes income items that may surprise people. The SSA-44 form does not list “I had an unusual income year” as a stand-alone life-changing event.

A business sale can still be relevant if it occurs alongside a listed event. For example, a person could sell an income-producing property and stop working. SSA must evaluate the actual event and supporting evidence. Do not assume a capital gain will be removed from MAGI just because it happened once.

The example asks SSA to use a $90,000 estimate of 2026 MAGI after work stops. Estimate income for the full year. Include severance, wages already earned, interest, realized gains, pension income, and other taxable items. Update the estimate if circumstances change. If you first submit an estimate, SSA-44 requires a signed copy of your 2026 return when filed. An estimate that is too low may lead to a correction.

Common mistakes and their cost

Sending SSA-44 without proving the event. SSA requires evidence of the event and more recent income. Without the required support, the requested $6,355.20 reduction may not happen. Gather the work separation letter, employer statement, and income evidence before filing.

Appealing the wrong issue. If the 2024 income figure is accurate but your 2025 income fell, a reconsideration may not address the change. The wrong route can delay a request and leave as much as $529.60 a month in modeled surcharges. Ask SSA which process addresses your facts.

Missing the appeal window. SSA’s IRMAA guidance gives 60 days after receipt of the determination notice to request reconsideration. Missing that window can complicate review. Record the notice date and delivery date. If you need more time, contact SSA immediately and ask about good cause.

Treating the Part D adjustment as the plan’s full premium. The $83.30 surcharge does not replace the plan’s own premium. A person with a $35 plan premium pays $118.30 in this simplified example before other charges. Use the statement for your actual plan.

Counting the standard Part B premium as savings. Even after IRMAA falls to zero, the 2026 standard Part B premium remains $202.90 a month. Removing the surcharge saves up to $5,355.60 in Part B over 12 months here. It does not remove the standard premium.

Assuming next year has the same bill. A later tax return may change the next surcharge. In 2027, SSA would usually look at 2025 income. As of October 27, 2026, SSA had not published its 2027 surcharge table. The 2026 amount does not support a 2027 estimate, so do not add another $6,355.20.

What to do, and when

When the notice arrives: save the full notice. Check its premium year, tax year, filing status, income, and Part B and Part D amounts. If it is wrong, mark the 60-day deadline to ask SSA to review it.

Within the next week: compare the notice with the federal tax return SSA used. If the income figure or filing status is wrong, contact SSA and ask what correction evidence it needs. If the income dropped because work stopped, ask about a new initial determination and Form SSA-44.

Before submitting SSA-44: collect proof of the qualifying event and proof of more recent MAGI. For this example, confirm that estimated 2026 MAGI is lower than 2025 MAGI; if it is not, use 2025 tax information as the form instructs. The form allows a 2026 estimate with supporting information, then requires the signed 2026 return when filed. Keep copies of every form and attachment.

Within the appeal window: submit Form SSA-561 or follow the method in the determination notice when you disagree with the determination. Keep proof of submission. If a tax return was amended or corrected, ask SSA how to provide proof the IRS accepted the change.

After filing: track the request, respond quickly to evidence questions, and keep paying the billed premium until SSA tells you the amount changed. Do not stop Part B or Part D payments based on an expected adjustment.

After a determination: compare the new notice with your Social Security benefit statement or Medicare bill. If SSA makes a favorable new initial determination, its procedures provide for a retroactive refund of excess IRMAA paid. SSA’s annual verification FAQ instructs beneficiaries to call if 30 days pass after a notice and the expected refund has not arrived. Treat that as a follow-up point only: it does not guarantee that all refunds are issued within 30 days. Keep the notice and payment records, and ask SSA how the change will be credited if you pay Medicare directly.

At tax time: file an accurate return and reconcile income estimates. If income was higher than expected, ask a tax professional whether the estimate or advance benefits affected your return. If income was lower, retain proof in case SSA requests it.

What to bring when you ask for help

For SSA, bring the determination notice, the relevant federal return, the work separation letter, and current income evidence. Ask whether you need a new initial determination or reconsideration. Keep a dated call log and copies of forms.

For a tax professional, bring both the 2024 and 2025 returns, a severance statement, pension or interest records, and details of any asset sale. Ask for a full-year MAGI estimate. SSA’s definition includes adjusted gross income plus tax-exempt interest.

For Medicare billing questions, contact the plan or Medicare about the base plan premium and coverage. Contact SSA about IRMAA. The surcharge determination and the insurance plan’s benefits are separate issues.

Questions people ask

Does retirement automatically erase the surcharge?

No. SSA must receive a request and evidence. A qualifying work stoppage can support a new initial determination when it significantly reduces income. SSA reviews the facts and decides whether the revised amount applies.

Is an appeal the same as an SSA-44 request?

No. SSA-44 asks for a new initial determination after a listed life-changing event. Reconsideration challenges an existing determination. Explain whether your income changed or the notice used incorrect information.

What if the business sale was the only reason income rose?

A one-off gain is not itself a listed life-changing event. SSA may still consider it alongside a qualifying event, but a high-income year alone does not establish an SSA-44 case.

What if I have Part B but no Part D plan?

The example’s Part D surcharge does not apply when the person lacks Part D coverage. SSA applies IRMAA only to the covered program or programs that apply to the beneficiary.

How much could this example save?

If SSA accepts the full-year reduction in this example, a person with Part B and Part D could save $6,355.20 in 2026 surcharges. Standard Part B and plan premiums still apply.

Can I use my 2026 income estimate before filing that return?

For a 2026 premium adjustment, SSA-44 Step 2 says to use estimated 2026 MAGI when it is lower than 2025 MAGI. If not, use 2025 tax information. The agency may ask for supporting evidence; submit the signed 2026 return when filed and update SSA if the estimate changes.

When to talk with a professional

Contact Social Security for the correct request path and evidence list. Ask a tax professional to estimate MAGI when severance, investment gains, pension income, or tax-exempt interest complicates the calculation. A Medicare counselor can help separate premium billing from coverage choices.

This article is educational. It cannot determine whether SSA will accept your event or estimate. Use the notice, current tax records, and SSA instructions for your own case.

Sources and as-of date

Rules and figures checked October 27, 2026. The 2026 figures are not estimates of 2027 premiums.

• SSA, Medicare Premiums for 2026, checked October 27, 2026.
• SSA POMS, HI 01101.020, 2026 IRMAA Sliding Scale Tables, checked October 27, 2026.
• SSA, Request to lower an IRMAA, checked October 27, 2026.
• SSA, Form SSA-44, revision 12-2025, checked October 27, 2026.
• SSA POMS, HI 01140.001, IRMAA appeals, updated June 5, 2026, checked October 27, 2026.
• SSA, Medicare Annual Verification Notices FAQ, checked October 27, 2026.
• CMS, 2027 Medicare Advantage ratebook and Prescription Drug rate information, including July 28, 2026 Part D plan-pricing release; this is distinct from beneficiary IRMAA surcharges.
• Medicare.gov, Medicare & You 2027, Part B cost section still states 2026 standard premiums and thresholds, checked October 27, 2026.
• Code of Federal Regulations, 20 CFR 418.1230, 20 CFR 418.1255, and 20 CFR 418.1260, checked October 27, 2026.
• SSA POMS, HI 01120.005, Life Changing Events, checked October 27, 2026. It lists capital gains from a property sale as a non-qualifying one-time event by itself.
• SSA POMS, HI 01101.050, Beneficiary Questions an IRMAA Determination or Decision, checked October 27, 2026. It states that a favorable new initial determination retroactively refunds excess IRMAA paid.