New to Pralana and retirement. When I was setting up healthcare expenses and validating the output/calculations, I noticed that when I click on 2029 Medicare MAGI (First year both my wife and I are eligible), I expected 2027 MAGI in pop up box to show $218,298 (See screen shot). It happens on pop box when you click on Medicare Premiums (Part A&B) as well. It looks like current year MAGI is being used for Medicare calcs. Am I reading this wrong or not understanding how MAGI and IRMAA work?
Hi, Pralana defines/shows the Medicare MAGI in 2029 as the amount to be used to calculate 2029 IRMAA which is based on your 2027 Federal AGI plus a couple of adjustments for non-taxable interest in 2027. The Metric MRI screenshot for the 2029 MAGI you provided itemizes the components of the MAGI calc, including "2027 Federal AGI".
Likewise, your 2027 MAGI, shown on the tabular projection as $218,298, is based on your 2025 Federal AGI. That $218,298 is used to calculate the 2027 IRMAA.
If Pralana used the $218,298 to calculate your IRMAA in 2029, that would be incorrect because that amount is based on 2025 Federal AGI (the 4th prior year).
I will modify the tooltip on the Medicare MAGI column heading to be more explicit that the amount shown for each year is the amount used in for the IRMAA calculation in that year and is based on Fed AGI & adjustments from the 2nd prior year.
Thanks
Charlie
