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

Question

Jeff Christiansen · 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 me at 801-550-1800 to answer questions that will help you better understand what to expect.

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

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)

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

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

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.

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.

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

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

Agents: Share Your Expertise

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Agent Locator

Medicare Agents HubA non-government resource website

Medicare Agents Hub
A non-government resource website