IRMAA life-changing events › Retirement (work stoppage)
Retired? How to lower IRMAA after a work stoppage
You or your spouse stopped working: you retired, were laid off, or sold the business you worked in. If that lowered your income, Social Security can set your IRMAA from the newer, lower year instead of your income from two years ago. You ask with Form SSA-44 and tick "Work Stoppage".
Does it qualify?
Counts
- You retired from your job
- You were laid off or your job ended
- You sold or closed the business you worked in
- Your spouse stopped working (it counts for your form too)
Doesn't count
- Your pension or Social Security starting (the event is the last day of work)
- A one-time bonus or a large capital gain
- A Roth conversion
Worked example: Walt, single, retired in June 2025
Walt retired from his engineering job in June 2025. Social Security set his 2026 premium from his 2024 income, a full year of salary. He filed his SSA-44 in May 2026, after filing his 2025 tax return.
| Income | MAGI | IRMAA a month |
|---|---|---|
| 2024 income (used now) | $152,000 | $240.40 |
| 2025 income (asked for) | $97,600 | $0.00 |
Saves $240.40 a month
Watch out: The date in Step 1 must match the employer's letter. If the letter says June 30, 2025, write 06/2025, not the month the pension started.
Proof of the event: send one
- A signed letter from your employer with your last day of work. Or your retirement or separation letter.
- Or your final pay stubs. Showing the last pay date.
- Self-employed: papers showing you sold or transferred the business. A bill of sale, transfer agreement or closing papers.
- Nothing at all? Your signed statement on the form. You sign it under penalty of perjury. Social Security accepts it when no other proof exists.
You also need proof of income for the year in Step 2: a signed copy of your Form 1040 or an IRS transcript. For a year you haven't filed yet, your estimate on the form is enough for now.
Don't have it yet?
Check before you send
- The Step 1 date matches your employer's letter
- If it was your spouse who stopped, you still tick Work Stoppage. Your spouse's proof works for your form.
- Step 2 uses the first year with the lower income, not earlier than the year you stopped
- Your name and Social Security number are on every page
- You kept a full copy of everything you sent
Send it online after signing in to your my Social Security account, or to your local Social Security office. The Form SSA-44 guide walks through every step. If Social Security says no, see how to appeal IRMAA.
Walt would save $2,884.80 a year. The kit costs $49 once, with a filled SSA-44 for your exact event.
Everything you need to fill out Form SSA-44, prove your life-changing event, and stop paying a surcharge based on income you no longer have.
- SSA-44 walkthrough for all 8 life-changing events
- Evidence checklist for your event
- What gets rejected, and why
- Income estimate worksheet
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The other life-changing events
- Cutting back hours (work reduction)
- Divorce or annulment
- Death of a spouse
- Marriage
- Loss of income-producing property
- Loss of pension income
- Employer settlement payment
Questions people ask
Does retirement (work stoppage) count as a life-changing event for IRMAA?
Yes. "Work Stoppage" is one of the 8 life-changing events on Form SSA-44. You or your spouse stopped working: you retired, were laid off, or sold the business you worked in. It lowers IRMAA only if your income dropped enough to move you to a lower bracket.
What proof do I need?
A signed letter from your employer with your last day of work. Or your final pay stubs. Self-employed: papers showing you sold or transferred the business. Nothing at all? Your signed statement on the form. You also need proof of income for the year in Step 2: a signed copy of your tax return or an IRS transcript, or your estimate for a year not filed yet.
What date goes in Step 1?
The month and year of your last day of work. Not the month your pension or Social Security started.
Which tax year do I put in Step 2?
The first year with the lower income. It must be more recent than the year Social Security used, and not before the event. If this year (the premium year) will be lower than last year, use this year as an estimate.