IRMAA Income Brackets for 2025: Understanding the Impact on Medicare Part B and Part D Premiums
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IRMAA Income Brackets for 2025: Understanding the Impact on Medicare Part B and Part D Premiums
The Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge that applies to Medicare Part B and Part D premiums for individuals with higher incomes. The IRMAA brackets are adjusted annually to account for inflation, and the brackets for 2025 have recently been released by the Centers for Medicare & Medicaid Services (CMS).
Understanding the IRMAA income brackets is crucial for individuals who are approaching or currently receiving Medicare benefits. By knowing their income bracket, they can estimate their potential Medicare Part B and Part D premium costs and plan accordingly.
2025 IRMAA Income Brackets
The 2025 IRMAA income brackets for Medicare Part B and Part D are as follows:
| Filing Status | Single | Married Filing Jointly |
|---|
Part B
- Below $97,000 | No surcharge | Below $194,000 | No surcharge
- $97,000 – $123,000 | 50% surcharge | $194,000 – $246,000 | 50% surcharge
- $123,000 – $155,000 | 75% surcharge | $246,000 – $310,000 | 75% surcharge
- $155,000 – $203,000 | 100% surcharge | $310,000 – $413,000 | 100% surcharge
- $203,000 and above | 125% surcharge | $413,000 and above | 125% surcharge
Part D
- Below $91,000 | No surcharge | Below $182,000 | No surcharge
- $91,000 – $116,000 | 25% surcharge | $182,000 – $232,000 | 25% surcharge
- $116,000 – $144,000 | 50% surcharge | $232,000 – $288,000 | 50% surcharge
- $144,000 – $175,000 | 75% surcharge | $288,000 – $350,000 | 75% surcharge
- $175,000 and above | 100% surcharge | $350,000 and above | 100% surcharge
How IRMAA Impacts Medicare Premiums
Individuals who fall into higher IRMAA income brackets will pay a higher monthly premium for Medicare Part B and Part D. The surcharge percentages are applied to the standard premium amounts, which are set by CMS.
For example, in 2025, the standard monthly premium for Medicare Part B is $164.90. For individuals with an income between $123,000 and $155,000 (single) or $246,000 and $310,000 (married filing jointly), the IRMAA surcharge is 75%. This means that they will pay an additional $123.68 per month, bringing their total monthly premium to $288.58.
Calculating Your IRMAA Income
To determine your IRMAA income bracket, you must use your modified adjusted gross income (MAGI). MAGI is your adjusted gross income (AGI) plus any tax-exempt interest you received during the year.
Your MAGI can be found on line 11 of your federal income tax return (Form 1040). If you are not required to file a federal income tax return, you can use your Social Security benefits statement to estimate your MAGI.
Planning for IRMAA
If you anticipate falling into a higher IRMAA income bracket, there are steps you can take to plan accordingly:
- Consider delaying retirement: Working longer will allow you to accumulate more retirement savings and potentially reduce your MAGI in retirement.
- Make pre-tax contributions to retirement accounts: Contributions to 401(k)s, IRAs, and other tax-advantaged accounts can lower your MAGI.
- Itemize deductions on your tax return: Itemizing deductions can reduce your AGI and potentially lower your MAGI.
- Explore Medicare Savings Programs: Individuals with limited income and resources may qualify for Medicare Savings Programs that can help pay for Part B premiums and other Medicare expenses.
Understanding the IRMAA income brackets and how they impact Medicare premiums is essential for individuals planning for their retirement. By proactively planning and taking steps to minimize their MAGI, individuals can reduce their potential IRMAA surcharges and save money on their Medicare costs.
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