If you are approaching retirement and Medicare enrollment, you may want to be on the look out for IRMAA. IRMAA is not a woman, it is a section of the IRS code that can affect what you pay for Medicare Parts B and D.
The Income-Related Monthly Adjustment Amount (IRMAA) is an additional amount that some Medicare beneficiaries are required to pay for their Medicare Part B and Part D premiums. The IRMAA is based on a beneficiary's modified adjusted gross income (MAGI) from two years prior, as reported on their federal tax return.
If your MAGI is above a certain threshold, you may be subject to an IRMAA, which means you'll pay a higher premium for your Medicare Part B and/or Part D coverage. The IRMAA is calculated on a sliding scale, so the higher your income, the higher your IRMAA will be.
The IRMAA applies to both new and existing Medicare beneficiaries whose income exceeds the threshold. If your income changes and you are required to pay an IRMAA, you will be notified by the Social Security Administration.
It's worth noting that not everyone is subject to an IRMAA. Most people pay the standard Part B and Part D premiums, which are based on a national average.
How Much is IRMAA?
The Income-Related Monthly Adjustment Amount (IRMAA) is an additional amount that some Medicare beneficiaries are required to pay for their Medicare Part B and Part D premiums. The amount of IRMAA that you will have to pay depends on your modified adjusted gross income (MAGI) from two years prior.
For 2023, the IRMAA for Medicare Part B ranges from an additional $65.80 to $395.70 per month, depending on your income. For Medicare Part D, the IRMAA ranges from an additional $13.50 to $91.90 per month, depending on your income.
The income thresholds for the IRMAA are adjusted each year, so it's important to check the most up-to-date information to determine whether you will be subject to an IRMAA and how much you will have to pay. If you are subject to an IRMAA, you will receive a notice from the Social Security Administration outlining the additional amount you will need to pay.