IRMAA Calculator

Frequently Asked Questions

What is IRMAA?

IRMAA is an income-related surcharge added to standard Medicare Part B and Part D premiums for beneficiaries with higher incomes. It is based on MAGI from two years prior and adds between $70 and $420+ per person per month to Part B premiums in 2026.

Which year's income determines my IRMAA?

Medicare uses a two-year lookback. Your 2026 Part B and Part D premiums are based on your 2024 MAGI as reported to the IRS. If 2024 included an unusually large Roth conversion or capital gain, your 2026 premiums may be elevated.

Do Roth IRA withdrawals count toward IRMAA?

No. Qualified Roth IRA distributions do not appear in AGI and are not counted in IRMAA MAGI. This is one of the primary long-term tax advantages of building Roth balances before Medicare enrollment.

Can I reduce my IRMAA if my income drops?

Yes. File SSA Form SSA-44 with the Social Security Administration to report a qualifying life-changing event (retirement, death of spouse, loss of income). SSA will use a more recent income estimate instead of the two-year lookback figure.

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Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How This Calculator Works

IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge on top of standard Medicare Part B and Part D premiums for beneficiaries whose income exceeds certain thresholds. The calculator takes your filing status and Modified Adjusted Gross Income (MAGI) from two years prior (Medicare uses a two-year lookback - your 2026 premiums are based on 2024 income), then looks up the applicable IRMAA tier to show your total monthly premium.

The surcharge is tiered: once your MAGI crosses any tier boundary, the entire monthly premium jumps to the new level - there is no gradual phase-in. This creates hard cliff effects where earning just $1 more can cost several thousand dollars per year in higher Medicare premiums.

2026 IRMAA Tiers

For 2026, the Part B standard premium is roughly $185/month per person. IRMAA tiers (individual / joint MAGI, approximate):

Tier 1: $106,000-$133,000 single / $212,000-$266,000 joint - adds about $70/month per person

Tier 2: $133,000-$167,000 single / $266,000-$334,000 joint - adds about $176/month

Tier 3: $167,000-$200,000 single / $334,000-$400,000 joint - adds about $282/month

Tier 4: $200,000-$500,000 single / $400,000-$750,000 joint - adds about $388/month

Tier 5: Above $500,000 single / $750,000 joint - adds about $420/month

Part D surcharges follow a similar tier structure and range from roughly $13 to $85/month. These numbers are adjusted annually by CMS; verify the current year figures on medicare.gov.

What Counts as MAGI for IRMAA

IRMAA MAGI is your Adjusted Gross Income (AGI) plus tax-exempt interest income (from municipal bonds and similar). It does NOT include Roth IRA distributions (qualified), HSA distributions, or life insurance proceeds. However, it DOES include:

Wages, salaries, self-employment income

Taxable Social Security benefits

RMD withdrawals from traditional IRAs and 401(k)s

Capital gains (including home sale gains above the exclusion)

Traditional IRA to Roth conversions

Tax-exempt bond interest

The two-year lookback means that a large Roth conversion, capital gain event, or RMD in 2024 will affect your 2026 Medicare premiums. Planning major income events ahead of Medicare eligibility can save thousands.

Appealing IRMAA - Life-Changing Events

If your income drops significantly after the lookback year due to a qualifying life-changing event, you can appeal IRMAA using SSA Form SSA-44. Qualifying events include:

Marriage, divorce, or death of a spouse

Retirement or reduction in work hours

Loss of income-producing property (through disaster or other event)

Loss of pension income

Employer settlement payment

Provide documentation of the event and your new income estimate. If approved, SSA uses the more recent income instead of the two-year-old lookback. Appealing is straightforward and worth doing - the reduction in premiums often takes effect within a few months.

Strategies to Reduce IRMAA

Roth conversions before 63: Moving money from traditional to Roth before you are close to Medicare enrollment raises current income but reduces future RMDs, lowering MAGI in retirement.

Qualified Charitable Distributions (QCDs): Directing up to $105,000/year from an IRA to charity satisfies RMD obligations without adding to MAGI.

Capital gain timing: Bunching gain realizations in years when MAGI is already in a given tier avoids pushing into a new tier with a separate event.

Income smoothing: Spreading large Roth conversions over multiple years to stay just below each tier boundary saves more than crossing the cliff once.

Tax laws change frequently. Verify current limits at IRS.gov and consult a qualified financial advisor before making retirement decisions.

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