IRMAA. It sounds like someone’s grandmother or aunt. But IRMAA is not nearly as sweet and loving as they are. IRMAA stands for Income-Related Monthly Adjustment Amount and if you fall into her clutches, it means you’ll have to pay higher premiums for both Medicare Part B and Part D based on your Modified Adjusted Gross Income (MAGI).
There is always a monthly premium for Part B. It’s adjusted every year, usually upward, based on assumptions of healthcare costs for the year. The monthly premium is deducted from your Social Security check if you’re receiving a Social Security benefit, or you receive an invoice every quarter if you’re on Medicare but not receiving a benefit yet. It’s your MAGI that determines whether you have to pay IRMAA. The 2025 Part B premium is $185. Here’s how your income can affect that.
Single Filers Joint Filers Part B IRMAA Total Monthly Premium
Less than $106,000 Less than or equal $0.00 $185
to $212,000
$106,000-$133,000 $212,000-$266,000 $74 $259
$133,000-$167,000 $266,000-$334,000 $185 $370
$167,000-$200,000 $334,000-$400,000 $295.90 $480.90
$200,000-$500,000 $400,000-$750,000 $406.90 $591.90
Above $500,000 Above $750,000 $443.90 $628.90
Part D coverage is purchased from private insurance companies and each company charges a different premium. But you could still have an IRMAA added to that premium based on your income.
Single Filers Joint Filer Part D IRMAA
Less than $106,000 Less than or equal $0.00
to $212,000
$106,000-$133,000 $212,000-$266,000 $13.70
$133,000-$167,000 $266,000-$334,000 $35.30
$167,000-$200,000 $334,000-$400,000 $57.00
$200,000-$500,000 $400,000-$750,000 $78.60
Above $500,000 Above $750,000 $85.80
Here are some other important items you need to know about IRMAA.
- Social Security looks at your MAGI from two years ago to determine if you have to pay an IRMAA penalty this year. So, for 2025, Social Security will look at your tax return from 2023.
- Social Security reviews your income every year to see if you will be required to pay IRMAA. The annual review of your income continues as long as you do.
- If you are married filing jointly and your MAGI exceeds any of the Medicare income thresholds and both spouses are on Medicare, then both will be required to pay the IRMAA penalty.
If you are on Medicare and your income is close to or exceeds any of the IRMAA thresholds, have a conversation with your CPA or accountant about additional strategies that can reduce your MAGI. Planning now may save you some money and frustration in 2027.
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