Medicare Surcharge Alert

If you’re on Medicare—or approaching it—you may see an additional cost called IRMAA (Income-Related Monthly Adjustment Amount)….

IRMAA is a surcharge added to your Part B and Part D premiums if your income is above certain levels.
 
How IRMAA Is Determined

• Social Security looks at your Modified Adjusted Gross Income from two years earlier.
• So, your 2023 tax return determines your 2025 IRMAA.

 
2025 Income Thresholds (2023 MAGI)

• Single: No IRMAA at $103,000 or less
• Married Filing Joint: No IRMAA at $206,000 or less
  Above these levels, premiums rise in five tiers.

 
Why People Get Hit With IRMAA
One-time income events like:

• Roth conversions
• Selling property or investments
• Large IRA withdrawals
• Bonuses or business income
• RMD spikes

 
Can You Appeal IRMAA?
Yes, if you had a qualifying life change such as retirement, reduced work hours, divorce, or the death of a spouse.
 
Planning Opportunities

• Time Roth conversions carefully
• Spread income over multiple years
• Use Qualified Charitable Distributions (age 70½+)
• Avoid large jumps over a tier threshold when possible