If you are approaching retirement (or in), you’ve undoubtedly heard or read on social media about IRMAA. That’s the surcharge they add to your Medicare Part B premium each month if you are what they deem a “high income retiree”. What do you do?
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IRMAA (Income-Related Monthly Adjustment Amount) is an extra monthly surcharge added to Medicare Part B and Part D premiums for beneficiaries with higher incomes.
How IRMAA Works
- The Surcharge: It increases your monthly medical and prescription drug costs.
- The Lookback Rule: The Social Security Administration uses your tax return from two years prior. For 2026 premiums, they look at your 2024 tax return.
- The Income Metric: It is based on your Modified Adjusted Gross Income (MAGI), which includes your adjusted gross income plus any tax-exempt interest.
- Standard Premium: The base 2026 Medicare Part B premium is $202.90 per month for those under the income threshold.
2026 IRMAA Brackets and Costs
| Single Filers (2024 MAGI) | Married Filing Jointly (2024 MAGI) | Part B Monthly Premium | Part D Monthly Surcharge |
|---|---|---|---|
| $109,000 or less | $218,000 or less | $202.90 | $0 + plan premium |
| $109,001 – $137,000 | $218,001 – $274,000 | $284.10 | $14.50 + plan premium |
| $137,001 – $171,000 | $274,001 – $342,000 | $405.80 | $37.50 + plan premium |
| $171,001 – $205,000 | $342,001 – $410,000 | $527.50 | $60.40 + plan premium |
| $205,001 – $499,999 | $410,001 – $749,999 | $649.20 | $83.30 + plan premium |
| $500,000 or more | $750,000 or more | $689.90 | $91.00 + plan premium |
