I've heard about IRMAA affecting my Medicare premiums. How can I find out if it applies to me, and how does it work?
Answered by 17 licensed agents
IRMAA (Income-Related Monthly Adjustment Amount) affects Medicare Part B and D premiums for those with higher incomes, and it's determined by the Social Security Administration based on your income from two years prior. You'll receive an "Initial Determination" if IRMAA applies to you.
The Social Security Administration office will notify you if IRMAA will apply to you, for it is calculated annually upon your tax returns. These rates may change yearly by Medicare and are publicized in your annual Medicare booklet. The amount you pay changes yearly and is recalculated from the income you submit on your tax return for that year.
IRMAA (Income-Related Monthly Adjustment Amount) affects Medicare Part B and Part D premiums for those with higher incomes. To find out if it applies to you, check your Medicare notice or the Social Security Administration (SSA) website. IRMAA is calculated based on your Modified Adjusted Gross Income (MAGI) from two years prior, and the SSA sends you a notice if you're subject to it.
IRMAA is always (NOT) a fun surprise and many folks don’t see it coming. It stands for Income-Related Monthly Adjustment Amount, but really, it just means Medicare is charging you more because you “made too much” two years ago. Yay, right?
Medicare looks at your income from two years back - so in 2025, they’re using your 2023 tax return. If your income was over a certain amount, you’ll pay extra for Part B and Part D. And no, it’s not always a small bump - it can be a few hundred bucks more per month depending on your income level.
You’ll get a letter from Social Security if IRMAA applies. The timing of that letter? Let’s just say it's government issued and doesn’t always conveniently show up BEFORE you’ve already picked your plans and thought you had your costs locked in.
If you’re not working with someone who brings this up ahead of time, that Social Security letter is not a fun one to open. That’s why it helps to trust your advisor who’s actually looking ahead - not just plugging in plan info or letting you go at it alone.
The good news? If your income has gone down if you just retired, sold a business, or lost a spouse - you can appeal it using form SSA-44 to get those premiums adjusted.
If your 2023 income was over $103,000 (single) or $206,000 (married filing jointly), it’s worth looking into. If not, you’re probably good. Either way, the key is catching it before you’re stuck wondering why your Medicare bill just jumped.
IRMAA is a way for Medicare to charge those in higher income brackets more for their part B and part D premiums. IRMAA always goes off of your income from 2 years prior, so if you sold a house for $1 million in 2023, Then in 2025 you will pay the highest part B and part D premiums. You’ll need to search “Medicare IRMAA 2025” to find the most up to date charts and plan accordingly. Keep in mind that you will pay a part B as well as a part D premium.
YES, IRMAA (Income-Related Monthly Adjustment Amount) definitely can affect your Medicare Parts B and D premiums if your income exceeds certain thresholds. You'll receive a notice from the Social Security Administration (SSA) called an "initial determination" if IRMAA applies to you, and you can request a re-determination if you believe the calculation is incorrect or your circumstances have changed. You can make some financial changes that can help reduce your IRMAA and subsequently your premiums for Part B and Part D. Feel free to contact me for further explanation.
IRMAA brackets for Medicare Parts B & D premiums are based on your 2023 Modified Adjusted Gross Income. These brackets determine how much premium surcharges will be.
The average Medicare beneficiary on a fixed income will not be assessed the Part IRMAA unless their income is above $100,000 or more or something of great value was obtained or sold causing it to be reported to the IRS
If you are assessed a Part D Irma you will receive a letter from Social Security.
If you are already on Medicare, then you would already know that you are paying the IRMAA because Social Security billed you for that, or it's already coming out of your Social. It's based on your gross income, from a 2 year ago tax return. If you are not yet on Medicare, there are tables that will show the income levels and IRMAA. A good agent will have those to show you. The only way to dispute an IRMAA is if the higher income was due to a 1-time amount from a lump sum pension, or sale of a property. If you have vastly lower income now, you can also try. There's a form on SSA.gov to dispute it.
Contact the Social Security Administration to determine if you are subject to the IRMMA and any penalties you be subject to. Those fees are added to the cost of the Medicare Advantage product, so even if the carrier has a zero premium, plan available to you, you must pay those fees and penalties to Medicare.
Income Related Monthly Adjustment Amount (IRMAA) can affect your Part B premium if you are above the Adjusted Gross Income Amount set each year. Social Security is looking at income 2 years back. Filing jointly vs. independent has different Adjusted Gross Income amounts. Looking at your Income Taxes will tell you earnings and you can pull up the chart for IRMAA for the year you are looking to turn on your Medicare Part B.
There is an income bracket that shows the rate for your Medicare premiums. Your modified adjusted gross income has to be about 106,000 to incur a surcharge.
IRMAA is a surcharge aimed at the high earning Medicare beneficiaries by using your Federal adjusted gross income and marital status. If it applies to you, Social Security will let you know how much your Part B and Part D will cost for the next year.
Good day. The IRMAA starts when your single filer modified adjusted gross income exceeds $103,000. If you file jointly the IRMAA will kick in if the MAGI exceeds $206,000. If your income triggers the IRMAA the Social Security Admininistration with sent you a letter informing you of your new premium. The letter can generally be expected later in the year.
