Home Sale Gain Raises Medicare Premiums for Both Spouses Under IRMAA
A retired couple's 2024 home sale produced a $120,000 taxable gain that raised their joint MAGI to $300,000, triggering Medicare IRMAA surcharges two years later. Because IRMAA is charged to each enrolled spouse, both paid about $2,885 more annually, adding nearly $5,770 to the household's Medicare costs. The two-year lookback means a 2024 sale affected 2026 premiums, so timing a closing can matter when other income is high.
Medicare’s IRMAA uses joint MAGI from a return filed two years earlier. In this case, a 2024 sale determined 2026 premiums. The couple’s $120,000 taxable gain, after basis, selling costs, and the Section 121 exclusion, lifted joint MAGI from $180,000 to $300,000. That placed them in a 2026 joint bracket above $274,000 and up to $342,000.
IRMAA applies per Medicare enrollee, not per household. Each spouse faced a $202.90 monthly Part B adjustment plus the standard $202.90 premium, or $405.80 monthly, and a $37.50 monthly Part D adjustment. That equaled $2,884.80 extra per person and $5,769.60 for the couple. IRMAA affects about 8% of Part B enrollees; joint MAGI below $218,000 avoids it.
Retirees with one-time income events—home sales, Roth conversions, RMDs—may face IRMAA surcharges two years later, and married couples can see the per-person charge doubled. This could make some households reconsider the timing of a closing or conversion, especially when joint MAGI approaches thresholds. Because only about 8% of Part B enrol