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IRMAA Brackets for 2025: What Income Triggers Higher Medicare Premiums?

  • Boomer Insurance
  • 7 hours ago
  • 2 min read

If you're approaching age 65 or already enrolled in Medicare, you may be surprised to learn that your income can directly impact how much you pay for Medicare Part B and Part D coverage. This income-based surcharge is called IRMAA—short for Income-Related Monthly Adjustment Amount—and it can add hundreds (or even thousands) of dollars per year to your Medicare premiums.


Let’s break down how IRMAA works, what the 2025 income brackets look like, and what you can do to plan ahead and potentially reduce your costs.


What Is IRMAA?

IRMAA is an additional premium charged to higher-income Medicare beneficiaries on top of their standard premiums for:

  • Medicare Part B (doctor visits, outpatient care)

  • Medicare Part D (prescription drug coverage)

IRMAA is based on your Modified Adjusted Gross Income (MAGI) from two years prior. So in 2025, the IRS uses your 2023 income tax return to determine if you owe IRMAA.


2025 IRMAA Income Brackets

Here are the projected 2025 IRMAA brackets based on inflation-adjusted estimates. (Final figures will be released by Social Security later this year, but these are close.)

2023 MAGI (Individual)

2023 MAGI (Married Filing Jointly)

Monthly Part B Premium (2025)

Part D IRMAA Surcharge (2025)

$103,000 or less

$206,000 or less

~$174.70 (base rate)

$0

$103,001 – $129,000

$206,001 – $258,000

~$244.60

~$12.90

$129,001 – $161,000

$258,001 – $322,000

~$349.40

~$33.30

$161,001 – $193,000

$322,001 – $386,000

~$454.20

~$53.80

$193,001 – $499,999

$386,001 – $749,999

~$559.00

~$74.20

$500,000+

$750,000+

~$594.00

~$81.00

Note: These are estimates based on inflation adjustments to 2024 rates. Social Security will release final 2025 figures in the fall.

What Counts Toward MAGI?

Modified Adjusted Gross Income (MAGI) includes:

  • Wages, pensions, and Social Security

  • Required Minimum Distributions (RMDs)

  • Interest, dividends, and capital gains

  • Rental and business income

  • Taxable portion of IRA withdrawals

MAGI does not include Roth IRA withdrawals or Health Savings Account (HSA) contributions.


Why This Matters

Many retirees unknowingly trigger IRMAA because of:

  • One-time capital gains (e.g., from selling a home or stock)

  • IRA withdrawals or conversions

  • Inherited IRAs or RMDs

Because IRMAA is based on income from two years prior, today’s financial decisions can impact what you pay for Medicare later.


Planning Tips to Avoid or Lower IRMAA

  1. Consider Roth conversions in lower-income years to reduce future RMDs.

  2. Manage investment withdrawals strategically to avoid IRMAA thresholds.

  3. Appeal IRMAA using SSA Form SSA-44 if you’ve had a qualifying life change (e.g., retirement, loss of income).

  4. Spread out large capital gains or withdrawals across tax years.

  5. Work with a financial advisor to time income and reduce your long-term Medicare costs.


Need Help Navigating IRMAA?

At Boomer Insurance Group, we help you do more than pick the right Medicare plan—we help you understand how your income affects your premiums and how to make smart choices that minimize unnecessary costs.


Contact us today to review your Medicare options and plan ahead for IRMAA. The earlier you act, the more you can potentially save.

 
 
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