The Income-Related Monthly Adjustment Amount (IRMAA) is an additional fee that higher-income Medicare beneficiaries must pay on top of their standard Medicare Part B and Part D premiums. For married couples filing separately, IRMAA can significantly increase monthly Medicare costs, depending on their income.
What
IRMAA is determined by the Social Security Administration (SSA) and is based on a person’s Modified Adjusted Gross Income (MAGI) from two years prior. This means that for the 2025 IRMAA brackets, the SSA uses income data from 2023. If your 2023 tax return is unavailable, your 2022 income information may be used instead.
In 2025, the standard Medicare Part B premium is set at $185.00 per month. However, IRMAA can raise this premium substantially for higher-income earners. While the average Medicare Part D base premium has decreased slightly to $46.50, high-income individuals still face additional IRMAA surcharges.
Brackets
For married couples filing separately, the IRMAA charges in 2025 are as follows:
| Income Level (2023) | Part B Monthly Premium | Part D Monthly Premium Surcharge |
|---|---|---|
| $106,000 or less | $185.00 | Plan premium only |
| $106,000 – $394,000 | $591.90 | Plan premium + $78.60 |
| $394,000 or more | $628.90 | Plan premium + $85.80 |
This table highlights how IRMAA impacts Medicare costs based on income. Couples earning more than $106,000 annually will see a sharp increase in their premiums.
Determine
To figure out your IRMAA costs for 2025, start by locating your Adjusted Gross Income (AGI) from your 2023 tax return. Then, add other income sources such as tax-exempt interest income, foreign-earned income, and specific deductions. The total amount is your Medicare-specific MAGI, which determines your IRMAA bracket.
Your MAGI includes income from various sources like Social Security benefits, capital gains, and rental income, making it important to consider all income streams when calculating your IRMAA liability.
Reduce
Reducing your IRMAA costs is possible with smart financial planning. Here are some tips to lower your IRMAA bracket:
- Delay Withdrawals: Avoid large withdrawals from retirement accounts in a single year.
- Utilize Roth Accounts: Withdraw from Roth IRAs or Roth 401(k)s, which are not included in MAGI.
- Harvest Tax Losses: Offset capital gains by selling investments at a loss.
- Charitable Contributions: Donate directly from your IRA through Qualified Charitable Distributions (QCDs).
- File Appeals: If you experienced a life-changing event (such as marriage, divorce, or retirement), you can appeal your IRMAA assessment to have it adjusted.
Impact
IRMAA charges can be a significant financial burden for higher-income Medicare beneficiaries, especially for married couples filing separately. Knowing the brackets and planning accordingly can help minimize the impact. By managing your taxable income, you can reduce IRMAA costs and ensure that your retirement funds stretch further.
FAQs
What is IRMAA in Medicare?
IRMAA is an extra charge added to Medicare premiums for high-income earners.
What income triggers IRMAA for couples filing separately in 2025?
Income above $106,000 triggers IRMAA for married couples filing separately.
How is IRMAA calculated?
It’s based on your MAGI from two years prior, including various income sources.
Can I reduce my IRMAA costs?
Yes, by managing taxable income, using Roth accounts, and making QCDs.
What is the highest IRMAA charge for Part B in 2025?
$628.90 monthly for couples earning $394,000 or more.
