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2024 IRMAA


Chart image to illustrate IRMAA

I have been getting quite a few calls lately about IRMAA, so I have put together this article to help explain what IRMAA is and how it works.

 

IRMAA stands for Income-Related Monthly Adjustment Amount. It is an additional cost for Medicare beneficiaries who have higher incomes. Most Medicare beneficiaries are not subject to IRMAA—only 5% are. If you are subject to IRMAA, your Medicare Part B and Part D premiums will be higher. The Social Security Administration (SSA) determines who pays an IRMAA based on the income reported two years prior. So, the SSA looks at your 2022 tax returns to see if you must pay an IRMAA in 2024.

 

The IRMAA is calculated on a sliding scale with five income brackets topping out at $500,000 and $750,000 for individual and joint filing, respectively. These figures change annually with inflation. IRMAA calculations have a two-year lag time. Whether you pay an IRMAA in 2024 depends on your 2022 tax returns. For 2024, beneficiaries whose 2022 income exceeded $103,000 (individual return) or $206,000 (joint return) will pay a total premium amount ranging from $244.60 to $594.00 depending on income. It’s easy to determine your 2024 Part B and Part D total premiums by adding the income-related monthly adjustment amount to the 2024 premium costs. For 2024, the Part B premium is $174.70 and the Part D is $55.50.

 

Here is a chart explaining how income affects the Part B premium and Part D IRMAA:

Single

Married Filing Jointly

Married Filing Separately

Part B Premium

Part D IRMAA

$103,000 or less

$206,000 or less

$103,000 or less

$174.70

$0 + your plan premium

$103,000 up to $129,000

$206,000 up to $258,000

N/A

$244.60

$12.90 + your plan premium

$129,000 up to $161,000

$258,000 up to $322,000

N/A

$349.40

$33.30 + your plan premium

$161,000 up to $193,000

$322,000 up to $386,000

N/A

$454.20

$53.80 + your plan premium

$193,000 and less than $500,000

$386,000 and less than $750,000

$103,000 and less than $397,000

$559.00

$74.20 + your plan premium

$500,000 or above

$750,000 and above

$397,000 or above

$594.00

$81.00 + your plan premium





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