He Retired From the Steel Mill in June 2025 and Lowered His Medicare Premium. Half a Year of Mill Wages Could Still Follow Him Into 2027
He filed the form, Social Security lowered his Medicare premium, and he assumed the hard part was over. But the agency is still billing him as though he clocked in at the steel mill every morning this year.
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A 68-year-old steel-mill supervisor earned $210,000 in 2024. He retired halfway through 2025 and filed Form SSA-44. Social Security then lowered his 2026 Medicare premium. He assumes Social Security now has retirement figured into his bill. But the agency is still working with an income figure that includes six months of mill wages. His first full year of retirement could bring the premium down again.
This mechanism is limited to people with high incomes. About 8% of Part D enrollees pay income-related surcharges. Single filers with modified adjusted gross income (MAGI) at or below $109,000, or joint filers at or below $218,000, pay only the standard premiums.
How His First SSA-44 Fixed 2026
IRMAA looks back two years, so Social Security priced his 2026 premiums using his 2024 return. At $210,000 as a single filer, he landed in the second-highest surcharge level. At that level, the Part D surcharge alone runs $83.30 a month.
He reported his 2025 work stoppage, which counts as a qualifying life-changing event. Step 2 of the form asks for income from a more recent tax year after the event. His 2025 salary, vacation pay and six months of pension added up to MAGI of $135,000. That was lower than the 2024 figure, so Social Security used it instead.
That $135,000 still includes six months of mill wages. It sits in the first IRMAA level, just $2,000 below the second.
A Full Year Without Mill Wages
His expected 2026 MAGI is $85,000. When asking Social Security to adjust his 2026 premiums, that lower figure belongs in Step 2. He does not have to wait until 2027 for a full year without wages to count.
Step 3 is for a further income drop in the following tax year. With 2026 in Step 2, that means 2027 in Step 3. If he supplies no second estimate, Social Security generally carries the first one forward until updated information replaces it. SSA instructs its staff to ask for the missing estimate, but he should check which income figure actually made it into his decision.
What Those Last Paychecks Still Cost Him
These figures use the published 2026 schedule to show the scale. Both cases also pay the standard Part B premium of $202.90 a month, plus their Part D plan premium.
| MAGI (single) | Part B surcharge, monthly | Part D surcharge, monthly | Combined surcharge, annual per person |
|---|---|---|---|
| $135,000 | $81.20 | $14.50 | $1,148.40 |
| $85,000 | $0.00 | $0.00 | $0.00 |
His $85,000 sits $24,000 below the first 2026 threshold. But a Roth conversion or other taxable income could eat into that cushion. Any taxable conversion amount belongs in the estimate for that year. The 2027 bill will use the thresholds and surcharges set for 2027.
A $135,000 Notice Can Still Be Fixed
If his 2027 notice still uses $135,000, he should contact Social Security with the newer income figure. He can update an existing retirement adjustment without reporting a new life-changing event. SSA-44 is one way to provide the information, but a fresh form is not always needed.
His estimate has to be accurate. Social Security later checks estimates against IRS records, and a significantly wrong one can lead to a refund or a retroactive bill. For IRMAA, MAGI means adjusted gross income plus tax-exempt interest, so municipal bond income counts toward his $85,000.
Three Moves to Make Before the 2027 Notice Arrives
- Update the income figure as soon as you can. Ask Social Security to review both 2026 and 2027. If he uses SSA-44 to correct 2026 premiums, put his expected 2026 income in Step 2. Complete Step 3 if he expects another drop in 2027.
- Build the estimate from full-year numbers. Include taxable pension and Social Security income, dividends, realized gains, taxable withdrawals and tax-exempt interest. Price any Roth conversion into the estimate before making it. Once he files his 2026 return, send Social Security a signed copy to back up the estimate.
- File one form per spouse. An SSA-44 decision covers only the person who asks. If both spouses pay IRMAA, each one must contact Social Security, even when the same retirement cut their joint income.
His first SSA-44 took half a year of mill wages out of the picture. His next update needs to show that the paycheck has stopped altogether.
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Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
