Do you know what IRMAA is and how it affects your Medicare premiums (and your Social Security benefits)? If not, read on…
What is IRMAA?
IRMAA stands for Income-Related Monthly Adjustment Amount. It is an extra charge added to Medicare Part B and Part D premiums for higher-income beneficiaries.
How is IRMAA Calculated?
IRMAA uses the Modified Adjusted Gross Income (MAGI) from your tax return to determine the surcharge amount each year. The surcharge is on a sliding scale. Your IRMAA amount is determined based on the MAGI from your tax return from two years ago. So, in 2026, the Social Security Administration (SSA) will be looking at your 2024 income to determine the 2026 IRMAA for this year’s Medicare premiums.
What are the 2026 income limits for IRMAA?
As mentioned, SSA has a two-year look back period for IRMAA. If your 2024 MAGI was above $109,000 (filing individually) or $218,000 (married filing jointly), IRMAA applies to you.
What counts towards IRMAA?
Capital gains and the taxable portion of your Social Security benefits count toward your IRMAA.
Does IRMAA apply to both Original Medicare and Medicare Advantage?
Yes – both Original Medicare and Medicare Advantage beneficiaries can be affected by IRMAA.
What should I do if I receive an IRMAA notice?
If your income significantly dropped due to a life-changing event (such as a divorce, loss of job, death of spouse, loss of pension, etc.) you can fill out a form with the Social Security Administration requesting a lower IRMAA.
How do I pay the IRMAA?
Like Medicare premiums, IRMAA is typically deducted directly from your monthly Social Security check. If you do not receive Social Security benefits, Medicare will directly bill you for the charge.
We hope you found this information useful! Is there a topic you’d like to see covered in a future issue? Email us and let us know.
