Your IRMAA Reduction Strategy
Based on your income level, here's how to understand and potentially reduce IRMAA surcharges.
What is IRMAA?
IRMAA (Income-Related Monthly Adjustment Amount) is an additional premium surcharge for Medicare Part B and Part D if your income exceeds certain thresholds. The good news? There are strategies to manage and potentially reduce these costs.
IRMAA Planning Strategies
1. Calculate Your IRMAA Bracket
Use our IRMAA calculator to determine which income bracket you fall into and estimate your total monthly Medicare costs including surcharges.
Calculate IRMAA2. Understand the 2-Year Lookback
IRMAA is based on your income from 2 years ago. Your 2026 IRMAA is based on your 2024 tax return. This lookback period is important for planning.
Key Point:
If you had a life-changing event (retirement, marriage, divorce, loss of income), you may qualify for an IRMAA reduction by filing Form SSA-44.
3. Life-Changing Event Appeals
You can request a reduction in IRMAA if you experienced one of these qualifying events:
- • Death of spouse
- • Marriage
- • Divorce or annulment
- • Work reduction or stoppage
- • Loss of income-producing property
- • Loss of pension income
- • Employer settlement payment
4. Income Management Strategies
Work with a financial advisor to explore these strategies:
- • Roth IRA conversions (timing matters)
- • Qualified Charitable Distributions (QCDs)
- • Harvest capital losses to offset gains
- • Defer income where possible
- • Consider timing of large withdrawals
5. Review Your IRMAA Notice
Social Security sends an IRMAA determination letter before the end of the year. Review it carefully and file an appeal within 60 days if you disagree or have had a qualifying life-changing event.
2026 IRMAA Brackets Quick Reference
For individuals:
- • Under $109,000: Standard premium ($202.90)
- • $109,000-$137,000: +$81.20/month
- • $137,000-$171,000: +$202.90/month
- • $171,000-$205,000: +$324.60/month
- • $205,000-$500,000: +$446.30/month
- • Over $500,000: +$487.00/month