If you’re a Medicare beneficiary, odds are that you’ll never want to have an encounter with IRMAA.

No, IRMAA isn’t a person – it’s a surcharge levied on high-income households that can dramatically increase Medicare premiums for both Part B and Part D plans. IRMAA stands for “income related monthly adjustment amount,” and since this topic comes up frequently, we’re taking a look at the IRMAA landscape for 2025 this week on the Blog.

Our guide is reporter Donna LeValley writing in this recent Kiplinger article. While LeValley does a good job with the basics of IRMAA, we encourage you to explore the topic in greater depth with your financial planner if you think the surcharge might apply to you. Meanwhile, let’s take a broad-brush look at IRMAA nuts and bolts.

IRMAA Surcharge Can Apply Regardless of Medicare Plan

“If you have Medicare Part B and/or Medicare Part D prescription drug coverage, you could owe a monthly surcharge based on an income related monthly adjustment amount (IRMAA),” LeValley begins. “These surcharges apply to enrollees in Original Medicare and Medicare Advantage plans.”

LeValley’s article contains a link to an HHS document announcing 2025 IRMAA income brackets and Parts B and D surcharges. However, a warning: this 28-page tome is really suited for those who are into the opaque language of federal policy-making. For the rest of us, the bottom line is that Medicare beneficiaries with income over $106,000 for single tax filers or $212,000 for joint filers will be hit with the IRMAA surcharge.

For these beneficiaries, total Monthly Part B premiums – normally $185 – will range from $259.00 to $628.90.

IRMAA Eligibility Based on Sliding Scale with 5 Brackets

According to Kiplinger, the Social Security Administration decides who pays the IRMAA amount and how much they’ll pay as a premium on top of Medicare Part B and Part D standard monthly premiums. The income brackets for IRMAA calculation top out at $500,000 for individuals and $750,000 for couples filing jointly. These figures change annually with inflation.

It’s important to note that your 2025 IRMAA surcharge is calculated from 2023 reported income, so the extra premium cost comes with a two-year lag time. “You should be mindful of the risk of a one-time spike in income that could trigger the IRMAA,” LeValley warns. “For instance, timing a Roth conversion properly, you can avoid the IRMAA when you convert and when you take distributions.” This is when solid financial advice is imperative.

How Does the Social Security Administration Decide Who Pays?

As noted, the IRMAA surcharge is on top of regular Part B and Part D premiums. “The surcharge is based on your Modified Adjusted Gross Income (MAGI) from two years ago,” LeValley explains. “The SSA looks at your 2023 tax returns to see if you must pay an IRMAA in 2025.” The actual Part B surcharge ranges from $74.00 to $443.90 (see below).

As noted, income is based on modified adjusted gross income which allows certain deductions and tax penalties. For purposes of calculating the surcharge, LeValley states, MAGI consists of your adjusted gross income plus:

• Tax exempt interest that has been earned or accrued
• Interest from US savings bonds used for qualifying education expenses
• Income earned abroad that was excluded from gross income
• Nontaxable income from in U.S. territories including: Puerto Rico, Guam, American Samoa and the Northern Mariana Islands.

IRMAA Surcharge Brackets for 2025

LeValley’s Kiplinger article contains a complete table of IRMAA income levels and surcharges which we can’t include due to formatting limitations. But we’ve summarized the highlights.

One important note, says LeValley: The IRMAA is what she calls “cliff” surcharge. “That means if your modified adjusted gross income exceeds the threshold by as little as a dollar, you will have to pay higher premiums,” she states. This can make a big difference in your financial planning. Here are the 2025 figures:

Not Subject to IRMAA Surcharge: Singles earning $106,000 or less, or married couples earning $212,000 or less will not pay an IRMAA surcharge.

Subject to IRMAA level one: Singles earning $106,001 t0 $133,000 and couples earning $212,001 to $266,000 will pay IRMAA surcharge of $74 for Part B and $13.70 for Part D on top of standard premiums.

Subject to IRMAA level two: Singles earning $133,001 t0 $167,000 and couples earning $266,001 to $334,000 will pay IRMAA surcharge of $185 for Part B and $35.30 for Part D.

Subject to IRMAA level three: Singles earning $167,001 t0 $200,000 and couples earning $334,001 to $400,000 will pay IRMAA surcharge of $295.90 for Part B and $57.00 for Part D.

Subject to IRMAA level four: Singles earning $200,001 t0 $500,000 and couples earning $400,001 to $750,000 will pay IRMAA surcharge of $406.90 for Part B and $78.60 for Part D.

Subject to IRMAA level five: Singles earning $500,001 or more and couples earning $750,001 or more will pay IRMAA surcharge of $443.90 for Part B and $85.80 for Part D.

Those receiving Social Security benefits will see IRMAA surcharges deducted from their monthly payments along with Medicare premiums. Others will have to pay IRMAA charges directly to Uncle Sam. The Kiplinger article offers helpful how-to instructions and suggestions.

Notification of IRMAA Liability – and Filing an Appeal

“If Social Security determines that you should pay an IRMAA,” LeValley writes, “they will mail you a notice called an initial determination. This notice should include information on how to request a new initial determination. A new initial determination is a revised decision that Social Security makes regarding your IRMAA.”

She adds, “If you can demonstrate to Social Security that a ‘life-changing event’ has affected your income, it will reduce or waive your premiums. If your request for a redetermination is denied, you can appeal that decision.”

Appeals can be directed first to the Office of Medicare Hearings and Appeals, then to the Medicare Appeals Council. If those fail, the federal district court where you live may be your last recourse. “You may need to hire an attorney for some of these levels,” says LeValley, “which are primarily used by beneficiaries appealing decisions about coverage.”

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(originally reported at www.kiplinger.com)