How IRMAA Is (and Why It Catches People Off Guard)
If you’re on Medicare, or will be soon, there’s a good chance you’ve heard of IRMAA. The Income-Related Monthly Adjustment Amount is a mouthful, but in plain English, it’s simply a surcharge added to your Medicare Part B and Part D premiums if your income is above certain levels.
Most people assume Medicare costs are the same for everyone. They’re not. The government uses your income from two years ago to determine whether you’ll pay extra. That means your 2023 tax return affects your 2025 Medicare premiums.
It’s not uncommon for people to get a letter from Social Security saying their premiums are going up — and it’s often a surprise. But the good news is, with the right planning, you can often minimize or even avoid IRMAA altogether.
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