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

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

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)

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

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

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

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

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.

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.

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

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

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

Seniors: Ask a Question of Your Own

Related Questions

Agent Locator

Medicare Agents HubA non-government resource website

Medicare Agents Hub
A non-government resource website