IRMAA 2025
In retirement your money is subject to new taxes, especially if you have “too much income” while you are in Medicare.
This new tax is Medicare’s Income Related Monthly Adjustment Amount or IRMAA for short.
What is IRMAA 2025?
To quote the Social Security Administration (SSA), IRMAA is “an additional amount you may pay on top of your Medicare Part B or Part D premiums if your income exceeds a certain level”.
Ultimately, IRMAA is a progressive tax on your income through Medicare.
What is too much Income for IRMAA 2025?
In 2025 the IRMAA Thresholds and surcharges for having too much income are as follows:
|
Individual |
Married |
What you will pay (monthly) |
|
|
MAGI |
MAGI |
Part B |
Part D |
|
< $106,000 |
< $212,000 |
$185.00 |
Premium (varies) |
|
$106,000 to $133,000 |
$212,000 to $266,000 |
$259.00 |
Premium + $13.70 |
|
$133,000 to $167,000 |
$266,000 to $334,000 |
$370.00 |
Premium + $35.30 |
|
$167,000 to $200,000 |
$334,000 to $400,000 |
$480.90 |
Premium + $57.00 |
|
$200,000 to $500,000 |
$400,000 to $750,000 |
$591.90 |
Premium + $78.60 |
|
> $500,000 |
> $750,000 |
$628.90 |
Premium + $85.80 |
How Social Security defines income for IRMAA 2025:
Income for IRMAA is extremely broad as it is “your adjusted gross income plus any tax-exempt interest you may have” or everything on lines 2a and 11 or the IRS form 1040 in tax-year 2025.
Some examples of the Income that will count towards IRMAA are:
|
Taxable Social Security |
Rental Income |
|
Wages |
Pension Income |
|
Interest / Tips |
Alimony |
|
Capital Gains |
All Dividends |
|
Distributions from any |
|
|
Traditional IRA |
Traditional IRA |
|
Keough Account |
SEP Accounts |
|
Traditional 403(b) |
Qualified Annuities |
What does NOT count as Income towards IRMAA:
|
Life Insurance |
Health Savings Accounts (HSA’s) |
|
Roth Accounts |
401(h) Plans |
|
Primary Residency |
Portions of QLAC |
What is the process in determining who is in IRMAA 2025?
Each year, in November, the Social Security Administration electronically requests the modified adjusted gross incomes (MAGI) of Medicare beneficiaries from the Internal Revenue Service (IRS).
The IRS will reply back, electronically, with only those Medicare beneficiaries whose MAGI exceeds the first IRMAA Income Threshold.
Once the SSA receives the names of the Medicare beneficiaries who are initially determined to reach IRMAA they will notify through the mail.
If after 20 days of those mailings being sent out and there is no request to Appeal the decision IRMAA will be applied for the upcoming year.
To learn more about appealing an IRMAA decision please click here.
