Bitcoin Sale Triggers Retiree's $7,000 Medicare Premium Hike Under 2-Year IRMAA Rule
Updated
Updated · 24/7 Wall St. · Jul 21
Bitcoin Sale Triggers Retiree's $7,000 Medicare Premium Hike Under 2-Year IRMAA Rule
2 articles · Updated · 24/7 Wall St. · Jul 21
Summary
$6,900 in extra 2028 Medicare costs can hit a 68-year-old retiree who sold appreciated Bitcoin in 2026, even without touching his 401(k).
IRMAA uses modified adjusted gross income from tax returns filed two years earlier, so the crypto gain on the 2026 return drives 2028 Part B and Part D premiums.
At MAGI of $500,000 or more, a single filer’s Part B premium rises from $202.90 to $689.90 a month and Part D adds a $91 surcharge; one dollar over a threshold triggers the full tier.
The rule treats a large crypto gain much like a big retirement-account withdrawal, and future required minimum distributions at age 73 could stack on top of Social Security and investment income.
The report says retirees can limit IRMAA exposure by modeling MAGI ahead, spreading sales across tax years, and harvesting losses, while SSA-44 relief generally excludes crypto sales alone.