It is past the deadline to open a SEP 401(k). New to Medicare and self-employment. Will a solo IRA decrease 2017 MAGI for Medicare purposes?

[taxhellstate]

New to sole proprietor / self-employment and Medicare in 2017. Need to lower 2017 MAGI but the deadline for solo 401(k) has passed. Can I open a solo IRA as a means to decrease MAGI for 2017 and thus eliminate the Medicare premium increase?

[dmertz · Accepted solution]

A SEP plan can be established and funded up the due date of your tax return.

Yes, a SEP contribution will lower your MAGI for Medicare purposes.  Whether or not the SEP contribution that you are permitted to make is sufficient to eliminate the IRMAA depends on the resulting MAGI.  Generally, your Medicare IRMAA is determined by your MAGI 2 years prior, so decreasing your 2017 MAGI will potentially reduce or eliminate your IRMAA for 2019.

http://socialsecurity.gov/pubs/EN-05-10536.pdf