Selling Your Home in Retirement Could Inflate Medicare Bills Two Years On

A retirement home sale can trigger CMS’s two-year MAGI lookback, potentially pushing 2026 Medicare Part B (and Part D) premiums higher for couples near IRMAA thresholds. Even after the $500,000 couple exclusion, the capital gain and MAGI calculation can elevate Medicare costs two years later, with 2026 brackets showing Part B at $649.20 per person per month plus a Part D surcharge for higher incomes. The timing of the sale and careful tax planning (including the lookback year) are crucial to avoid a surprise bill in retirement.