What are the brackets for Irmaa surcharges?

To avoid or reduce Medicare IRMAA (Income-Related Monthly Adjustment Amount) surcharges, you need to manage your Modified Adjusted Gross Income (MAGI) because the surcharges use a strict cliff system based on your tax return from two years prior.

Proactive Strategies to Lower MAGI

• Use Qualified Charitable Distributions (QCDs): If you are 70½ or older, you can transfer up to $111,000 directly from your traditional IRA to a qualified charity. This satisfies your required minimum distributions (RMDs) without counting as taxable income.
• Execute Strategic Roth Conversions Early: Convert pre-tax IRA funds into a Roth account during lower-income years before you turn 63. This lowers future RMDs and provides tax-free withdrawals that do not count toward your MAGI.
• Spread Out Large Capital Gains and Withdrawals: Avoid taking large, one-time lump sums from traditional retirement accounts or selling highly appreciated assets in a single calendar year. Spread these financial moves across multiple tax years to stay below IRMAA thresholds.
• Leverage Tax-Free Income Sources: Draw your retirement lifestyle cash flow from Roth IRAs or health savings accounts (HSAs). Withdrawals from these vehicles are excluded from your MAGI calculation.

How to Appeal an IRMAA Surcharge

• File Form SSA-44: If you experienced a qualifying life-changing event—such as retirement, work stoppage, divorce, or the death of a spouse—you can ask the Social Security Administration to use your current lower income instead of the two-year lookback data.
• Submit Documentation: Complete Form SSA-44 along with proof of your life-changing event and an estimate of your current year's lower income.

Official 2028 Medicare IRMAA (Income-Related Monthly Adjustment Amount) tax brackets have not been published yet by the Centers for Medicare & Medicaid Services (CMS), as they are typically announced in late 2027.

How 2028 IRMAA Is Determined

• The Lookback Year: Your 2028 IRMAA surcharges will be based on your 2026 Modified Adjusted Gross Income (MAGI), following the standard two-year lookback rule.
• Income Components: MAGI includes your Adjusted Gross Income plus any tax-exempt interest income.
• Projected Thresholds: Financial analysts estimate future brackets using approximate annual inflation adjustments on prior years, though the top tier ($500,000 for single filers and $750,000 for married couples filing jointly) remains fixed by law.

Yes, IRMAA (Income-Related Monthly Adjustment Amount) surcharges are recalculated every year by the Social Security Administration.

How Annual Recalculation Works

• Two-Year Lookback: Each year's surcharge is based on your federal tax return from two years prior (for example, 2026 premiums use your 2024 tax return).
• Income Changes: If your income changes—such as dropping below the threshold after retiring—your IRMAA surcharge can decrease or disappear entirely in subsequent years.
• Inflation Indexing: The income brackets themselves are adjusted annually for inflation, meaning the thresholds can shift even if your personal income remains the same.
• Life-Changing Events: If you experience a major life event (like marriage, divorce, or work reduction/cessation), you do not necessarily have to wait for the annual cycle; you can appeal an IRMAA decision immediately using Form SSA-44.

Medicare premiums go up when your modified adjusted gross income (MAGI) is greater than $109,000 for individual tax filers or $218,000 for married couples filing jointly.

When you earn more than these baseline amounts, Medicare adds a surcharge called the Income-Related Monthly Adjustment Amount (IRMAA) to your Medicare Part B and Part D coverage.

How Income Surcharges Work

• Tax Timeline: Medicare looks at your tax return from two years prior. For example, your costs are based on your tax return from two years ago.
• Affected Parts: This extra charge applies to Medicare Part B (medical insurance) and Part D (prescription drugs). Part A (hospital insurance) costs do not change based on your income.
• Income Metric: Medicare uses your Modified Adjusted Gross Income (MAGI), which is your adjusted gross income plus any tax-exempt interest income.

2026 Part B Income Tiers and Surcharges

If you go over the base limit, your total monthly Part B premium increases through sliding tiers:

• Individual $109,001 – $137,000 / Joint $218,001 – $274,000: Total monthly Part B premium is $284.10.
• Individual $137,001 – $171,000 / Joint $274,001 – $342,000: Total monthly Part B premium is $405.80.
• Individual $171,001 – $205,000 / Joint $342,001 – $410,000: Total monthly Part B premium is $527.50.
• Individual $205,001 – $500,000 / Joint $410,001 – $750,000: Total monthly Part B premium is $649.20.
• Individual over $500,000 / Joint over $750,000: Total monthly Part B premium is $689.90.

(Note: Part D prescription drug plans add an extra monthly surcharge ranging from about $14.50 to $91.00 on top of these Part B changes, depending on your exact tier).

Yes, both husband and wife on Medicare must pay the IRMAA surcharge if their combined joint income crosses the government limit.

How IRMAA Works for Married Couples

• Per Person Charge: Medicare charges IRMAA to each individual person, not just once to the household.
• Shared Income: The Social Security Administration looks at your combined Modified Adjusted Gross Income (MAGI) from a joint tax return.
• Full Surcharge Each: If your joint income goes over the limit, both spouses pay the full extra fee separately. It is not split between them.
• No Medicare, No Fee: If only one spouse is enrolled in Medicare, only that enrolled spouse pays the IRMAA surcharge.

Key Numbers for 2026

• Income Limit: For 2026, joint income over $218,000 (based on your 2024 tax return) triggers IRMAA.
• The Cliff Effect: If you go over the limit by even one dollar, both spouses must pay the full surcharge for that tier for the entire year.
• Part B and D: The extra fee is added to both your Part B (medical insurance) and Part D (prescription drug) monthly costs.