Medicare

IRMAA (Income-Related Monthly Adjustment Amount)

IRMAA requires higher-income Medicare beneficiaries to pay surcharges on top of standard Part B and Part D premiums, with the amount based on income reported two years earlier.

Last reviewed: May 2026 · Editorial methodology

Definition

The Income-Related Monthly Adjustment Amount (IRMAA) is a premium surcharge applied to Medicare Part B and Part D for beneficiaries whose Modified Adjusted Gross Income (MAGI) exceeds certain thresholds. IRMAA is calculated using income from two years prior — so 2026 IRMAA is based on 2024 tax returns. For Part B in 2026, the standard premium is $202.90/month; IRMAA surcharges create brackets ranging up to $443.90/month for individuals with MAGI above $500,000. Part D IRMAA adds $12.90 to $81.00 per month on top of the plan's base premium depending on income bracket. IRMAA is determined by the Social Security Administration and is applied automatically to monthly premiums for most beneficiaries. If you experience a significant reduction in income due to a life-changing event (retirement, divorce, death of spouse, loss of income), you can file SSA Form SSA-44 to request a reduction based on more recent income. IRMAA income thresholds are adjusted annually for inflation, so planning around the bracket thresholds is a key strategy in Medicare-aware retirement income planning.

Where this term matters

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Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Medicare Part BMedicare Part B charges a monthly premium — $202.90 in 2026 for most beneficiaries — and covers the outpatient medical services that Part A does not.Medicare Part DMedicare Part D covers prescription drugs and features a $2,100 out-of-pocket cap in 2026, ending the coverage gap that previously left beneficiaries with full costs.MAGI (Modified Adjusted Gross Income)MAGI is your adjusted gross income plus certain additions like tax-exempt interest and foreign income, used to assess marketplace and Medicaid subsidy eligibility.Original MedicareOriginal Medicare provides broad provider access nationwide with no referrals required but lacks an out-of-pocket maximum, making supplemental coverage important.

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Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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