The Income-Related Monthly Adjustment Amount (IRMAA) is an extra charge added to your Medicare Part B and Part D premiums if your income exceeds certain thresholds. It applies to higher-income beneficiaries and is based on your Modified Adjusted Gross Income (MAGI) from your IRS tax return two years prior (e.g., 2024 IRMAA is based on your 2022 tax return).
IRMAA Thresholds & Costs for 2024
Medicare Part B IRMAA (2024)
| Income (MAGI) from 2022 | Single | Married (Joint) | Part B Monthly Premium (Includes IRMAA) |
| $103,000 or less | $103,000 or less | $206,000 or less | $174.70 (standard premium) |
| $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 |
Medicare Part D IRMAA (2024)
| Income (MAGI) from 2022 | Single | Married (Joint) | Extra Part D Premium (IRMAA) |
| $103,000 or less | $103,000 or less | $206,000 or less | $0 (No IRMAA) |
| $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 |
�� Important Notes:
- IRMAA is in addition to your plan’s standard premium.
- Medicare notifies you if you owe IRMAA based on IRS-reported income.
- If your income drops, you can appeal IRMAA by filing Form SSA-44.
How to Avoid or Reduce IRMAA
- Monitor your taxable income (especially from Roth conversions, capital gains, and retirement withdrawals).
- Use tax-efficient strategies like Roth IRAs, health savings accounts (HSAs), and charitable donations.
- If your income decreases due to retirement, job loss, or other events, you can appeal the IRMAA decision.
Conclusion
IRMAA is an extra cost for higher-income Medicare beneficiaries, impacting both Part B and Part D premiums. Understanding how it’s calculated and using tax planning strategies can help reduce or avoid IRMAA charges in future years.
Would you like help estimating your IRMAA costs or learning how to appeal if your income has changed?
