(Income-Related Monthly Adjustment Amount)
If you’re on or going to be in Medicare, you will pay a monthly premium. But if your retirement income is “too high,” the government adds a nice little surcharge called IRMAA. Think of it as a tax for saving too much.
Who Pays IRMAA?
You’ll owe IRMAA if you:
- Have Medicare Part B (doctor visits) and/or Part D (prescriptions), and
- Your income is above the limits.
👉 No Part B or Part D = no IRMAA.
What Counts as Income?
The government looks at your MAGI (Modified Adjusted Gross Income). That’s basically your AGI + tax-exempt interest.
Counts toward IRMAA:
- Traditional 401(k)/IRA withdrawals
- Wages, pensions, annuities (taxable)
- Taxable Social Security
- Dividends, capital gains, rental income
Doesn’t count:
- Roth IRA/401(k) withdrawals
- Life insurance proceeds
- HSAs
- Home equity
👉 Translation: Traditional accounts = IRMAA pain. Life Insurance / Roths = IRMAA shield.
2025 IRMAA Brackets
Here’s what the income thresholds look like for 2025:
| 2025 | |||
| Individual MAGI | Couple MAGI | Part B | Part D |
| < $106,000 | < 212,000 | $206.50 | Premium (varies) |
| $106,000 – $133000 | $212,000 – $266,000 | $259.00 | $13.70 |
| $133,000 – $167,000 | $266,000 – $334,000 | $370.00 | $35.30 |
| $167,000 – 200,000 | $334,000 – $400,000 | $480.90 | $57.00 |
| 200,000 – $500,000 | $400,000 – $750,000 | $591.90 | $78.60 |
| > $500,000 | > $750,000 | $628.90 | $85.80 |
Why Most Retirees End Up in IRMAA
- RMDs: At 73, the government forces withdrawals from traditional accounts.
- Social Security: Taxable benefits stack on top.
- Investments: Dividends, capital gains, rentals — more fuel.
If you’re married, it gets worse: when one spouse passes, the survivor drops into the single brackets with the same RMDs. That’s why IRMAA is a widow’s tax in disguise.
Why IRMAA Matters
Some advisors shrug: “It’s just a couple thousand a year.”
But IRMAA grows almost 9% annually. Rule of 72? That means it doubles every 8 years.
- Today: Maybe $2,100/year.
- 10 years: ~$8,000/year.
- 15 years: ~$10,000+/year.
👉 IRMAA is not a one-time hit. It’s a lifelong surcharge if you cross the income line.
The Bottom Line
If you’ve got traditional retirement accounts, it’s not if you’ll hit IRMAA, it’s when. The only real defense? Strategic planning with Roth conversions, timing Social Security, and managing taxable income.
Because the less you plan, the more Medicare smiles.
Dan McGrath
The Integrity Life Brokerage
📞 617-894-8043 (text preferred)
✉️ dan@theintegritylb.com
