03/01/2026
📋 IRMAA stands for Income-Related Monthly Adjustment Amount. It is a surcharge added to your Medicare Part B and Part D premiums if your income is above a certain level.
Most people have never heard of it until they get a letter from the Social Security Administration telling them their premiums are higher than expected.
The threshold in 2026 is $109,000 for single filers and $218,000 for joint filers. Your income from two years prior determines the surcharge. So your 2024 tax return is what SSA uses to set your 2026 Medicare costs.
This is where people approaching retirement get caught. Your last full year of working income, plus any severance, stock options, or Roth conversions you did during the transition, all count toward the MAGI number Medicare uses.
The surcharges are structured as cliffs, not brackets. Crossing a threshold by a single dollar triggers the full surcharge for that tier. The first cliff alone costs $974 per year.
If your income dropped because you retired, you can file Form SSA-44 and ask SSA to use your current income instead. That appeal option exists specifically for life-changing events like retirement, divorce, or death of a spouse.
The two years before Medicare enrollment are the ones that matter most. Save this if you are getting close.
