Retirement Income Increases Impact on Medicare Premium

Some parts of the premium structure are affected by income. Vitalii Vodolazskyi/ShutterStock

You’ve worked hard to save for retirement. And whether it’s in a 401(k) plan, individual retirement account (IRA), or annuity, at one point, you’re going to withdraw funds. But that influx of money could cause a problem with your Medicare premium.

For most people, Medicare premiums are stable. But if you are in a certain tax bracket, you may have to pay premium increases. When does this happen? And is there anything you can do to prevent the increase?

4 Parts to Medicare Premium Structure

There are four parts to Medicare, and each has a premium. Some parts of the premium structure are affected by income, but others are not.