Many people think of certain birthdays as being milestones for retirement. The ages of 50, 55, 56, 57, 59.5, 62, 65, and depending upon when you were born, ages ranging from 65 to 67 are years that have specific meaning for those thinking of retirement or already in retirement.
Here is a brief overview of how these birthdays have special meaning for your retirement.
- 50 – when catch-up contributions kick in for retirement accounts.
- 55 – “rule of 55” allows penalty-free withdrawals from employer plans.
- 57 – the minimum retirement age for many federal employees.
- 59½ – the magic number for tapping retirement accounts without penalties.
- 62 – when you can claim Social Security (though at a reduced amount).
- 65 – the start of Medicare eligibility.
- 67 – full retirement age for many Social Security recipients.
- 73 – the current age for Required Minimum Distributions.
I know with all these different ages regarding various milestones in your retirement journey, we are approaching enough to play a game of Bingo. But there is another age that should be considered with the lot. It can be called the Look Back to Age 63.
Here’s why it matters: Medicare premiums aren’t based on what you earn at 65—they’re based on the income reported two years earlier to the IRS via your tax return.
The Social Security Administration uses your tax return from two years ago to decide whether you’ll pay the standard Medicare Part B premium—or a much higher one with a surcharge.
Part B IRMAA surcharges in 2026
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
| Less than or equal to $109,000 | Less than or equal to $218,000 | $0.00 | $202.90 |
| Greater than $109,000 and less than or equal to $137,000 | Greater than $218,000 and less than or equal to $274,000 | $81.20 | $284.10 |
| Greater than $137,000 and less than or equal to $171,000 | Greater than $274,000 and less than or equal to $342,000 | $202.90 | $405.80 |
| Greater than $171,000 and less than or equal to $205,000 | Greater than $342,000 and less than or equal to $410,000 | $324.60 | $527.50 |
| Greater than $205,000 and less than $500,000 | Greater than $410,000 and less than $750,000 | $446.30 | $649.20 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $487.00 | $689.90 |
That means the financial choices you make at 63 could unintentionally push you into a higher premium bracket.
In the year you attain age 63, you should think strategically for financial decisions that will affect your income that year —because going just $1 over an IRMAA bracket will “bump” you into the next IRMAA bracket. For couples filing jointly, the effect doubles—meaning thousands of dollars in extra Medicare costs over time.
Some of the strategies are:
- Plan your capital gains, such as selling property or stock, in a taxable account prior to age 63.
- Consider the implications of Roth conversions. Be careful converting traditional accounts into Roth accounts. This is because such conversions are considered taxable events. Be very cautious at age 63 with Roth conversions.
- If still working, you may want to explore increasing tax-deductible contributions to your TSP and IRAs. Take advantage of Catch-Up contributions and don’t forget the spousal IRAs.
Turning 63 could be the make-or-break year for your future Medicare premiums. A little foresight can mean the difference between paying the standard rate—or hundreds more each month.
