IRMAA Brackets
This article provides a comprehensive overview of the Income-Related Monthly Adjustment Amount (IRMAA) brackets for Medicare Part B and Part D premiums in 2024.
Contents
The Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge applied to Medicare Part B and Part D premiums for high-income beneficiaries, based on their modified adjusted gross income (MAGI) from two years prior. For 2025, the IRMAA brackets are determined by the income reported on 2022 tax returns, with thresholds starting at $103,000 for individual filers and $206,000 for married couples filing jointly. This system of income-based premium adjustments aims to ensure that higher-earning Medicare beneficiaries contribute more to the cost of their healthcare coverage, while also helping to maintain the long-term financial stability of the Medicare program.
Understanding IRMAA Brackets
What is IRMAA?
IRMAA stands for Income-Related Monthly Adjustment Amount, which is an additional premium that high-income Medicare beneficiaries must pay on top of their standard Part B and Part D premiums1. This surcharge is designed to have wealthier individuals contribute more to the cost of their Medicare coverage.
How IRMAA is Calculated
The Social Security Administration (SSA) determines IRMAA based on the modified adjusted gross income (MAGI) reported on your tax return from two years prior. For 2025 IRMAA calculations, the SSA will use your 2022 tax return information.
Part B IRMAA Brackets 2025
For 2025, the standard Medicare Part B premium is $174.70 per month. However, if your income exceeds certain thresholds, you may be subject to IRMAA surcharges. Here are the 2025 IRMAA brackets for Part B:
| Individual MAGI | Married Filing Jointly MAGI | Monthly Premium |
|---|---|---|
| ≤ $103,000 | ≤ $206,000 | $174.70 |
| $103,001 – $129,000 | $206,001 – $258,000 | $244.60 |
| $129,001 – $161,000 | $258,001 – $322,000 | $349.40 |
| $161,001 – $193,000 | $322,001 – $386,000 | $454.20 |
| $193,001 – $500,000 | $386,001 – $750,000 | $559.00 |
| > $500,000 | > $750,000 | $594.00 |
Part D IRMAA Brackets 2025
Medicare Part D premiums also have IRMAA surcharges for high-income beneficiaries. The 2025 IRMAA brackets for Part D are:
| Individual MAGI | Married Filing Jointly MAGI | Monthly Surcharge |
|---|---|---|
| ≤ $103,000 | ≤ $206,000 | $0.00 |
| $103,001 – $129,000 | $206,001 – $258,000 | $12.90 |
| $129,001 – $161,000 | $258,001 – $322,000 | $33.30 |
| $161,001 – $193,000 | $322,001 – $386,000 | $53.80 |
| $193,001 – $500,000 | $386,001 – $750,000 | $74.20 |
| > $500,000 | > $750,000 | $81.00 |
Special Considerations
Married Filing Separately
For those who are married but file taxes separately, the IRMAA brackets are different. If your MAGI is greater than $103,000 and less than $397,000, you’ll pay higher surcharges. If your MAGI is $397,000 or more, you’ll pay the maximum surcharge.
Appeals Process
If you experience a life-changing event that reduces your income, you can appeal your IRMAA determination by filing Form SSA-44. This allows you to request a reduction in your IRMAA based on more recent income information.
How to Manage IRMAA
- Plan for retirement distributions: Carefully manage withdrawals from retirement accounts to potentially stay below IRMAA thresholds.
- Consider Roth conversions: Converting traditional IRA funds to Roth IRAs in lower-income years can help reduce future taxable income.
- Utilize qualified charitable distributions: For those over 70½, making charitable donations directly from IRAs can reduce taxable income.
- Review investment strategies: Consider tax-efficient investment options to manage overall taxable income.
While official 2026 IRMAA brackets won’t be announced until late 2025, projections suggest a slight increase in income thresholds. It’s important to note that 2026 IRMAA will be based on 2024 tax returns.
