{
  "id": 15170590,
  "title": "This 401(k) Move Could Come At a Huge Cost After Age 63",
  "url": "https://urgent.news/2026/10/17/this-401-k-move-could-come-at-a-huge-cost-after-age-63",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-17T09:35:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/retirement/2026/10/17/this-401k-move-could-come-at-a-huge-cost-after-age/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "When you reach the age of 63, withdrawing a significant amount from your 401(k) can have unforeseen consequences for your Medicare costs a few years later. This is due to the Medicare Income-Related Monthly Adjustment Amount (IRMAA), which may result in higher premiums if your income rises above a certain threshold. Typically, Medicare eligibility begins at age 65, with premiums automatically deducted from Social Security checks. The IRMAA surcharge is based on high household incomes, adding between $81.20 and $487.00 to monthly Medicare premiums. Since 401(k) withdrawals are considered income, this could push your Modified Adjusted Gross Income (MAGI) above the IRMAA threshold, leading to increased monthly costs. While it may seem counterintuitive that age 63 is relevant to IRMAA eligibility, the reason lies in the fact that Medicare reviews income from two years prior when setting premiums. Therefore, the MAGI reported at age 63 determines whether you'll face the IRMAA surcharge at 65. Although there is a way to request a reconsideration of the extra surcharge due to life-changing events, such as marriage, divorce, death of a spouse, loss of pension income, or property loss, these situations must be substantial to warrant a reversal. Otherwise, the impact of the IRMAA on your Medicare costs is permanent. It's crucial to comprehend this rule when planning 401(k) withdrawals or other retirement income strategies to optimize your financial situation.",
  "summary": "Will you end up making your monthly expenses climb?",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "This 401(k) Move Could Come At a Huge Cost After Age 63",
        "url": "https://urgent.news/2026/10/17/this-401-k-move-could-come-at-a-huge-cost-after-age-63-15178836",
        "published": "2026-10-17T09:55:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}