Will Medicare Part B cost more with 401(k) withdrawal?

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Q. I took a large withdrawal from my 401(k) to put a down payment on another home in Florida. I withdrew $72,000 with 20 percent withheld to go for taxes. My adjusted gross income is about $130,000 this year. Am I going to have to pay more on Medicare B? I’m married with no other dependents.
— Retiree

A. You’re right to wonder about the costs.

Your income has everything to do with what you’ll pay for Medicare.

Medicare Part B criteria for 2019 states, “The standard Part B premium amount in 2019 will be $135.50.”

If your modified adjusted gross income (MAGI) as reported on your IRS tax return from 2017 is above a certain amount, you will pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA), said Altair Gobo, a certified financial planner with U.S. Financial Services in Fairfield.

“Your question suggests that you took the $72,000 401(k) distribution this year, 2018,” Gobo said. “You need to look at your 2017 MAGI.”

Gobo said you should look at the chart below from Medicare.gov chart to determine if there will be any extra cost for your premiums.


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