What Is an IRMAA in Medicare?
When you turn 65 years old, you have the opportunity to put the taxes that you have paid throughout your career to work for you by enrolling in Medicare.
Regardless of your income level at age 65, the Medicare program uses tax proceeds that you and your peers paid over the years to reduce your out-of-pocket costs for healthcare coverage.
Some people with limited income may get an even bigger reduction. Some people with significant income may be asked to pay a little more.
That’s where IRMAA enters the equation.
Short for income-related monthly adjustment amount, IRMAA is the amount you might be asked to pay in addition to Medicare’s standard premiums for your coverage. The numbers can change every year, but as of 2024, you are required to pay Medicare IRMAA:
- If you file taxes individually and your annual income is more than $103,000
or
- If you file taxes jointly with your spouse and your annual household income is more than $206,000
How Is My Income Used in My IRMAA Determination?
For 2024, your IRMAA status is determined by your 2022 modified adjusted gross income (MAGI).
You can use information from your 2022 tax form to calculate your MAGI, but the Social Security Administration (SSA) will gladly do so for you. If your MAGI adds up to you owing Medicare IRMAA, then the SSA will let you know by sending you an Initial IRMAA Determination that will summarize your situation and explain how you can appeal.
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What Parts of Medicare Does IRMAA Affect?
IRMAA is a consideration with two parts of Medicare — Part B and Part D.
Part B of Original Medicare, commonly referred to as medical insurance, features a standard monthly premium that changes each year ($174.70 in 2024). Medicare Part D, which is drug coverage offered by private insurance companies, has a monthly premium that varies from plan to plan.
What Are the IRMAA Rates for 2024?
The categories of income for Medicare IRMAA in 2024 are the same for both Part B and Part D, but the amounts you must pay are different. Depending on your income, a maximum of $419.30 could be added to your Part B premium, and a maximum of $81.00 could be added to your Part D premium.
How much will IRMAA add to my Part B costs?
If your 2022 individual MAGI is more than $103,000, you will be subject to a higher Medicare Part B monthly premium in 2024.
- Individual MAGI: Up to $103,000
- Joint MAGI: Up to $206,000
- Cost added to standard premium: $0
- Individual MAGI: $103,001-$129,000
- Joint MAGI: $206,001-$258,000
- Cost added to standard premium: $69.90
- Individual MAGI: $129,001-$161,000
- Joint MAGI: $258,001-$322,000
- Cost added to standard premium: $174.70
- Individual MAGI: $161,001-$193,000
- Joint MAGI: $322,001-$386,000
- Cost added to standard premium: $279.50
- Individual MAGI: $193,001-$500,000
- Joint MAGI: $386,001-$750,000
- Cost added to standard premium: $384.30
- Individual MAGI: $500,000 and above
- Joint MAGI: $750,000 and above
- Cost added to standard premium: $419.30
If you were married and lived with your spouse during the tax year but filed a separate return, your Part B IRMAA 2024 is as follows:
Annual MAGI up to $103,000
- Cost added to standard premium: $0
- Cost added to standard premium: $384.30
- Cost added to standard premium: $419.30
How Much Will IRMAA Add to My Part D Costs?
The income categories for IRMAA are the same for both Part B and Part D. However, you pay significantly less IRMAA for your Part D coverage.
- Individual MAGI: Up to $103,000
- Joint MAGI: Up to $206,000
- Cost added to standard premium: $0
- Individual MAGI: $103,001-$129,000
- Joint MAGI: $206,001-$258,000
- Cost added to standard premium: $12.90
- Individual MAGI: $129,001-$161,000
- Joint MAGI: $258,001-$322,000
- Cost added to standard premium: $33.30
- Individual MAGI: $161,001-$193,000
- Joint MAGI: $322,001-$386,000
- Cost added to standard premium: $53.80
- Individual MAGI: $193,001-$500,000
- Joint MAGI: $386,001-$750,000
- Cost added to standard premium: $74.20
- Individual MAGI: $500,000 and above
- Joint MAGI: $750,000 and above
- Cost added to standard premium: $81.00
If you were married and lived with your spouse during the tax year but filed a separate return, your Medicare Part D IRMAA 2024 is as follows:
Annual MAGI up to $103,000
- Cost added to standard premium: $0
- Cost added to standard premium: $74.20
- Cost added to standard premium: $81.00
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How Do I Avoid Medicare IRMAA?
Your modified adjusted gross income (MAGI) is your adjusted gross income (AGI) with qualifying deductions added back, meaning that your MAGI is equal to or greater than your AGI. Your AGI is calculated as a part of filing taxes on Form 1040 (it appears on Line 11).
Outside of the correction of an error, there’s nothing you can do to change your MAGI for 2022. But, moving forward, if you believe your MAGI may be close to the IRMAA limits, you may benefit from seeking advice from a personal finance expert. A CPA or financial advisor may be able to suggest strategies that could reduce your MAGI and save you money.
Medicare Learning Guides
Healthcare is personal. So is choosing insurance. If you are new to Medicare, a beneficiary researching options, or a caregiver, we have tailored Medicare Guides for you.
Before 65 Guide
Understanding health insurance before age 65, especially when considering early retirement
Medicare Plans Guide
Costs, coverage and enrollment details for each Medicare plan
Medicare Beneficiary Guide
For those currently enrolled in Medicare
Low Income and Medicare Guide
For individuals with a qualifying income status
A Caregiver's Guide
For individuals with a qualifying income status