How can I avoid or reduce IRMAA charges on my Medicare premiums?

Question

Bret Swope · Accepted Answer

The fact is IRMAA charges are calculated based on your AGI (Adjusted Gross Income) from 2 years ago. Know this may give you and your tax accountant time to do some financial planning that will help you pay less IRMAA charges when the time comes. You can do a Google search to see the levels of additional IRMAA charges that will be added to your base Medicare premium.

I'm an independent agent and am compensated for my services by the insurance companies. I never charge you additional fees for my services. I'm asked this question (IRMAA charges) quite often by higher income earners. You can contact to answer questions that will help you better understand what to expect.

Steve and Sue Brauer · Answer

Hi, thanks for watching. So the question is, how can someone avoid or reduce IRMAA charges on the Medicare premium? Just to recap with IRMAA, if you make over $106,000 this year, or if you're filing jointly and make over $212,000, you're gonna be charged an upcharge from Social Security on your Medicare Part B premium. How do you avoid that? If there's some way to tailor what you show as your modified adjusted gross income, that's one way. If you have maybe an uptick in your income for one year, a lot of times you can go to Social Security, sit down with them, show them that you don't typically make that much money, and provide a history of what you've made and what you anticipate to make. Many times they can make an adjustment, but other than that, it's pretty clear cut in terms of what the upcharge is when you make over a certain amount.

Mark Bilgere · Answer

First its important to know what causes an IRMAA. Your IRMAA is based off your Modified Adjusted Gross Income. For most people this is the same as their GI. The MAGI just adds back in any interest from Municipal bonds. SO if you have a high AGI, you will have a high MAGI. THis will cause you to have an IRMAA.

To avoid an IRMAA, there are a few things you can do.
1. Send some of your RMDs directly to a charity. This can keep yor income lower.
2. If you are still working, use all the pre-tax contributions available to you. 401K. IRA
3. Avoid bunching large capital gains, real estate sales and ROTH conversions together

If you already have an IRMAA and you have a qualifying life changing event, you can file for a reevaluation. Form SSA-44  Retirement does count.

The most important step to take is to be aware and use a local broker that will help you determine if you will have an IRMAA.

Larry Dalton · Answer

IRMAA's income tables for singles and married couples filing jointly are pretty cut and dry. They are designed to share these expenses with individuals whose incomes exceed those of regular Medicare patients. In a professional opinion from an agent, the agent can only explain how these tables are set up, but the individual’s CPR or tax attorney can lay out alternative options.

Answered by Larry Dalton on April 2, 2025

Broker Licensed in OK & TX

Answered by Larry Dalton Medicare Insurance Agent

Mark Maliwauki · Answer

Once your income reduces, get with SSA and let them know so the IRMAA premium or "tax" can be reduced or eliminated

Mitzi Davis · Answer

You can always appeal the IRMMA. You can have it reduced or eliminated if your income from taxes 2 years ago or your situation has changed.

Edward Wooten · Answer

Your premiums are based on your TAXABLE income from two years prior. 2027 premiums will be based on income from this year so speak to your tax accountant and or financial advisor to help you prepare for future premiums that most likely will be more than they are now.

Answered by Edward Wooten on August 4, 2025

Broker Licensed in IL & MO

Answered by Edward Wooten Medicare Insurance Agent

Jennifer McDonnell · Answer

IRMAA is an adjustment to the cost of Medicare benefits.  Those who have higher income pay a little more for Medicare Part B and Medicare Part D.

Many seniors do not realize selling a piece of property may increase there 'income' thus reflect a increase to them for paying for Medicare Part B or Part D.

Many seniors take some of their income and give to their children as financial support when they should consider gifting it as a non-taxable donation instead.

Anything that is considered 'income' may cause their Medicare premium to the government to increase because of IRMAA

Mitchell Jerome · Answer

You can't reduce the IRMAA charges. They have a 2-year look-back window... so if retire, you might have a good chance to see it naturally be reduced if income reduces over time. Personally, I've had several executive clients of mine relay to me that a visit to SSA, sitting before a person, they were able to reduce their IRMAA charges. They basically pleaded they were retired and not making that income anymore. So what do you have to lose? Go to SSA and make a case.

Answered by Mitchell Jerome on September 8, 2025

Broker Licensed in TX

Answered by Mitchell Jerome Medicare Insurance Agent

Tyler Dalton · Answer

IRMAA is based on your income from two years ago, so what you made in 2024 is what Medicare looks at when they set your 2026 premiums. If you know a big income year is coming, maybe you're selling property, doing a Roth conversion, or cashing out a retirement account, try to spread that income out over a few years instead of taking it all at once. The best thing to do would be to plan ahead 5-10 years before you start medicare to make sure you do not have any income spikes to throw you over the IRMAA threshold

Staying under the IRMAA income brackets even by a dollar can save you a lot on your Part B and Part D costs.

Now if you already got hit with IRMAA, you can actually appeal it. There's a form called the SSA-44 that lets you request a reconsideration if you've had a life-changing event like retiring, getting divorced, or losing a spouse. 

That drop in income could get the surcharge reduced or removed. Talking to someone who understands how Medicare pricing works — like a local insurance agent or financial advisor — is worth it if you're anywhere near those income thresholds.

Kevin McIntire · Answer

IRMAA has a 2-year look back for income purposes. You can reduce, or eliminate, your IRMAA risk by planning ahead and trying to adjust your earnings to fall under the IRMAA guidelines. You can also file an IRMAA Appeal Form if you've already been assessed an IRMAA charge. This form can be found at https://www.ssa.gov/medicare/lower-irmaa.

Answered by Kevin McIntire on April 4, 2025

Broker Licensed in IN & OH

Answered by Kevin McIntire Medicare Insurance Agent

Joe Zappia, CRPC®, CFEI®, CMIP® · Answer

Typically by using financial planners who are familiar with Medicare & IRMAA planning.  There are strategies that can be used IF you qualify.

Steven Bleicher · Answer

That would be more of a question for your accountant. This is due to the rule that states that the “Adjusted Gross Income” on your 2-year old tax return applies to the Part B monthly premium. Those of us who have an “AGI” & file a joint return of less than $206,000.00 in 2023 will be paying the least amount of $185.00 per spouse per month in 2025. Anyone fortunate enough to earn higher incomes must go to the Medicare.gov website and find the chart for “IRMAA” in order to see exactly what they will be paying. You ought to ask your CPA if in filing 2 individual returns will save you a significant amount of $$ or not?

Answered by Steven Bleicher on June 3, 2025

Broker Licensed in AZ

Answered by Steven Bleicher Medicare Insurance Agent

Steve Houchens · Answer

To potentially avoid or reduce IRMAA (Income-Related Monthly Adjustment Amount) charges on your Medicare premiums, focus on strategies to lower your Modified Adjusted Gross Income (MAGI), such as making tax-deductible retirement contributions, charitable donations, and strategically timing income and withdrawals.

Answered by Steve Houchens on April 2, 2025

Agent Licensed in KY & TN

Answered by Steve Houchens Medicare Insurance Agent

Kris Moen · Answer

IRMAA is just Medicare looking back two years and saying, "You made too much back then, so we’re charging you more now."
The trick is controlling what shows up on that tax return—or fixing it if life changes.

Mary Salmon · Answer

IRMAA is the income-related monthly adjustment amount -- this is an additional fee beneficiaries must pay for Part B and Part D depending on their modified adjusted gross income from the income tax return two years prior. Charitable donations can reduce your adjusted gross income. Also think about contributing money to a tax deductible retirement account. For people with vacation homes or property, selling that property will definitely effect your income for that year so it is important to consider whether to sell the property or keep it.

Answered by Mary Salmon on April 22, 2025

Broker Licensed in TX & OK

Answered by Mary Salmon Medicare Insurance Agent

Marnie Applegate · Answer

Hi everyone, this is Marnie Applegate with Medicare. I am here to answer a question on how you can avoid or reduce IRMAA charges on Medicare premiums. Your IRMAA adjustments, which have been around since 2007, are applied based upon your income from a two-year lookback period. So in 2025, it's currently being applied based upon your income in 2023. And those are applied to both Part B and Part D.

So if you’ve had anything like marriage, divorce, annulment, death of your spouse, work stoppage or reduction, loss of income due to property loss, or loss of pension income, or maybe you just retired, you can go to Medicare.gov or cms.gov and pull up SSA-44. You can complete that form, attach the required documents, and send it into Social Security. They will review it, and if they agree, they will either reduce or eliminate your IRMAA adjustment.

If you're wondering how they determine what those adjustments are, feel free to go to cms.gov and type in IRMAA. It will take you to the tables and show you how they are applying those adjustments to your Part B and your Part D premiums. Hope that helps answer the question, and if you have anything else, please feel free to reach out and contact me. Thanks!

Erlynne (Elle) Massie · Answer

Focus on investment and money strategies that will lower your modified gross income year over year with the following strategies in mind:

Make tax-deductible contributions to retirement accounts

Take qualified charitable deductions if you're age 70.5 or older

Convert traditional IRA funds to Roth IRA's to reduce future RMD's

Strategically manage large withdrawals by spreading them out over future years

Appeal the determination if you've experienced a significant life event such as a divorce or job loss.

Dee Ethridge · Answer

IRMAA charges for 2026 are based on your income from 2024. If you made above $110,000 for an individual or $220,000 for a couple, you will have to pay additional premiums for medicare. To reduce that amount your income would have to be reduced. If you call Medicare, they can be extremely helpful with your questions.

Answered by Dee Ethridge on October 13, 2025

Agent Licensed in FL, AL, GA, ND & SC

Answered by Dee Ethridge Medicare Insurance Agent

Rukshini Sandrasegaran · Answer

The IRMAA for Part D and Part B premium based on your last two years of income. Managing this income and spreading it over one's life. I do Medicare 101 online seminars where I go through these details.

Answered by Rukshini Sandrasegaran on April 27, 2026

Broker Licensed in AZ

Answered by Rukshini Sandrasegaran Medicare Insurance Agent

Andrew Kramer · Answer

It is very rare to be able to reduce your IRMAA because most of the time, it's based on your taxable income from 2 years prior. The only exceptions are if the higher income was from a 1-time payout, typically a pension, or property sale. If your current income is dramatically lower that what it was 2 years ago, there's a form on SSA.gov to appeal it. Good luck!

Answered by Andrew Kramer on August 13, 2025

Agent Licensed in FL

Answered by Andrew Kramer Medicare Insurance Agent

Meghan Blankenship · Answer

You can reduce or avoid IRMAA (Income-Related Monthly Adjustment Amount) charges by managing your taxable income, appealing when life changes lower your income, and using tax-smart strategies like Roth conversions or charitable distributions.

Answered by Meghan Blankenship on November 23, 2025

Broker Licensed in FL, MD & OH

Answered by Meghan Blankenship Medicare Insurance Agent

Marcie Barnes · Answer

If you are assessed a Part D IRMAA, it's based on your annual income reported to the IRS.

Consult a tax professional to find out ways to reduce or avoid it.

Suzanne Lamperti · Answer

Make sure you sign up for your benefits when you become eligible for them. That way you avoid any and all IRMAA.

Jack Mayer · Answer

IRMAA, or the Income-Related Monthly Adjustment Amount, is an additional fee that some Medicare beneficiaries must pay on top of their standard Part B and Part D premiums if their income exceeds certain thresholds. For 2025, individuals with an income over $106,000 and couples filing jointly with an income over $212,000 will incur this surcharge, which is determined based on income from two years prior.

Answered by Jack Mayer on June 23, 2025

Agent Licensed in CA & NV

Answered by Jack Mayer Medicare Insurance Agent

Jennifer Kalbach · Answer

IRMAA is based off of Modified Adjusted Gross income and there is a threshold for single and joint tax returns which have a 2 year look back.

Barbara Barnes, CMIP® · Answer

The only way that you can avoid these charges is to reduce your income, at least two years prior to starting Medicare benefits. That requires advanced planning and possibly lifestyle changes that most people are not aware they need to make or prepared to make. IRMAA charges Are not designed to be avoided or mitigated. They are designed to bring additional money in to prop up a failing system. That said, when you retire and start Medicare, you often have a reduced income. That reduced income can be the basis of an appeal of IRMAA charges. Filing an appeal is easy, but requires that you gather some paperwork and submit the appeal on a timely basis. Education about the IRMAA is important to reduction and mitigation of these charges. Too often, Medicare beneficiaries who are charged with IRMAA fees are completely unaware that such fees exist until they receive the letter telling them that they must pay more for their Medicare part B and/or part D benefits.

Answered by Barbara Barnes, CMIP® on May 24, 2025

Agent Licensed in PA

Answered by Barbara Barnes, CMIP® Medicare Insurance Agent

Carol Conner · Answer

Check your projected income, maximise your tax deferred contributions, delay taxable withdrawals manage investments plan Roth conversions, track life changing events and review annually

Jaye Maxx Alexander II · Answer

To reduce IRMAA (Income-Related Monthly Adjustment Amount), consider the following strategies: 

Inform Medicare if you’ve had a life-changing event that affected your income.
Avoid certain income-boosting changes to your annual income.
Use Medicare savings accounts (MSA) contributions.
Watch your IRA/401(k) distributions and avoid taking large distributions in one year.
Increase contributions to tax-deferred accounts.
Donate appreciated assets directly to charity.
Make qualified charitable distributions (QCDs).
Distributions from Roth accounts do not count toward your MAGI.
Look for losses in your taxable accounts that could help offset any capital gains.
Submit the SSA-44 form with proper documentation if your income has decreased due to a life event.

Ben Washington · Answer

you avoid or reduce IRMAA charges on my Medicare premiums? By lowering your taxable in prior to taking medicare two years before 65 or submit Monthly Adjustment Amount form (life-changing event)

Cheryl Lyons · Answer

Great question—IRMAA catches a lot of people off guard, especially around retirement.

First, quick refresher (in plain English)

IRMAA = Income-Related Monthly Adjustment Amount
It’s an extra charge added to your Medicare Part B and Part D premiums if your income is above certain limits.

Important (and annoying) detail:

Medicare looks at your income from TWO YEARS AGO.

So in 2026, they’re usually using 2024 tax data.

How to avoid or reduce IRMAA (the practical stuff)
1. Watch your “MAGI” like a hawk

IRMAA is based on Modified Adjusted Gross Income (MAGI), not just your paycheck.

Common things that push people over the line:

Large IRA or 401(k) withdrawals

Roth conversions

Capital gains from selling property or investments

One-time bonuses or severance

Required Minimum Distributions (RMDs)

💡 Strategy: Spread income over multiple years when possible instead of taking a big hit in one year.

2. Use Roth accounts strategically

Roth IRA withdrawals do not count toward MAGI

Partial Roth conversions done before age 65 can reduce future IRMAA exposure

This is one of the most powerful long-term planning tools.

3. Time big financial moves carefully

If you can control when income hits:

Delay selling investments until a lower-income year

Spread withdrawals across December/January to straddle tax years

Avoid stacking multiple income events in the same year

Sometimes staying $1 over the limit can cost thousands in extra premiums.

4. File an IRMAA appeal if your income dropped

This is HUGE—and underused.

If your income went down due to a life-changing event, you can ask Social Security to reduce or remove IRMAA.

Qualifying events include:

Retirement or work reduction

Loss of income-producing property

Divorce or death of a spouse

Employer settlement ending

You do this using SSA Form 44.

👉 This can lower your premiums immediately, not years later.

5. Coordinate Medicare decisions with tax planning

This is where people get burned:

Medicare choices

Chad Hardy · Answer

IRMAA is an extra charge added to your Medicare Part B and Part D premiums if your income is above certain limits. It’s reviewed every year for the next year’s premiums but always looks back two years at your IRS tax return.

So, for example, your 2026 Medicare premiums are based on your 2024 income. If your income has gone down since then — maybe you retired, lost a source of income, or had another major life change — you can ask Social Security to review it using Form SSA-44 (Request for Reconsideration).

In many cases, they’ll lower or remove the IRMAA once they see your updated income.

Silvana Peacock · Answer

IRMAA is based on your income from two years ago, so keeping your adjusted gross income lower can help reduce future charges. If your income has dropped because of retirement, divorce, or another life change, you can file an SSA-44 form with Social Security to ask for a lower premium.

Answered by Silvana Peacock on September 3, 2025

Broker Licensed in FL, MI, NC, NJ, SC & VA

Answered by Silvana Peacock Medicare Insurance Agent

Randy Hill · Answer

Yeah, IRMAA can be a surprise hit to your Medicare premiums if your income’s above a certain level. But there are a few  ways to either avoid it or bring it down.

First, it all comes down to your income from two years ago, so if you can keep your taxable income under those limits, you’re golden. You can use Roth IRAs or Roth 401(k)s because money from those dont count toward your income, so it helps keep you under the radar. And if you’re taking money from traditional retirement accounts, you could think about converting some to Roth early on (before Medicare kicks in) to lower your future tax hits.

Also, if you’ve had a big life change like retirement, loss of a spouse, or a drop in income—you can actually appeal your IRMAA charge. You just fill out a form (SSA-44) and explain your situation.

Keep in mind the sale of a home with capital gains income can affect your IRMAA as well which could throw you into a higher income level. 

Bottom line: it’s all about planning ahead. If you’re getting close to retirement or Medicare age, it’s worth sitting down with a tax or financial advisor and figuring out what moves you can make now to avoid that extra premium later.

Mark Summers · Answer

For those who can determine when they apply for Medicare Part B. Make sure your tax return from 2 years ago put you below the threshold before enrolling in Medicare Part B. Or if you had a life changing event that warrants consideration; you can request a new initial determination.

Answered by Mark Summers on February 2, 2026

Broker Licensed in OR

Answered by Mark Summers Medicare Insurance Agent

Christine Vassar · Answer

I recommend consulting a financial advisor who can help you manage your income items that contribute to the calculation of the MAGI that is used to calculate IRMAA charges

Oscar Molina · Answer

To avoid or reduce Income-Related Monthly Adjustment Amount (IRMAA) charges, which are based on your tax return from two years prior, you must lower your Modified Adjusted Gross Income (MAGI). Key strategies include using Qualified Charitable Distributions (QCDs) from IRAs, contributing to pre-tax retirement accounts, managing capital gains, and filing a Form SSA-44 for life-changing events.

Answered by Oscar Molina on February 5, 2026

Agent Licensed in UT, CA, TX & WA

Answered by Oscar Molina Medicare Insurance Agent

How can I avoid or reduce IRMAA charges on my Medicare premiums?

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