What Are the 2023 and 2024 IRMAA Medicare Income Brackets?
IRMAA is an extra fee that you pay on top of your Medicare Part B and D rates if you earn above a certain threshold.
People who earn over $97,000 ($103,000 in 2024) and couples who make over $194,000 ($206,000 in 2024) have to pay an extra fee called an income-related monthly adjustment amount (IRMAA) on top of their Medicare Part B and Part D rates. The fee works on a sliding scale, and it applies to both Original Medicare and Medicare Advantage plans.
The federal government determines if you're required to pay an IRMAA by looking at your tax returns from two years ago. You can appeal your IRMAA status if your financial circumstances have shifted in the past two years.
What is an IRMAA?
People with Medicare who earn a high income have to pay an IRMAA, an extra charge on Medicare Parts B and D. The fee kicks in if you make more than $97,000 (going up to $103,000 in 2024) or if you and your spouse collectively earn over $194,000 (going up to $206,000 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.
Currently, only 7% of Americans are required to pay an IRMAA.
IRMAA calculations are based on your income from two years ago. Whether you must pay an IRMAA in 2023 depends on your 2021 tax returns. Your 2024 IRMAA fees will be based on your 2022 income.
What are the IRMAA brackets for 2023 and 2024?
The IRMAA income brackets for 2023 start at $97,000 ($103,000 in 2024) for a single person and $194,000 ($206,000 in 2024) for a married couple. Which bracket you fall into depends on your taxable income with a few deductions, such as IRA contributions and interest from tax-free bonds, added back in. This is known as your modified adjusted gross income (MAGI).
For most people, modified-adjusted gross income is more or less the same as adjusted gross income (AGI). If your income places you on the borderline for IRMAA or if you routinely make significant deductions, it's worth calculating your MAGI.
2023 IRMAA brackets for Medicare Part B and D
2021 income (single/joint) | Part B | Part D |
|---|---|---|
| $97,000/$194,000 | $65.90 | $12.20 |
| $123,000/$246,000 | $164.80 | $31.50 |
| $153,000/$306,000 | $263.70 | $50.70 |
| $183,000/$366,000 | $362.60 | $70.00 |
| $500,000/$750,000 | $395.60 | $76.40 |
2024 IRMAA brackets for Medicare Part B and D
2022 income (single/joint) | Part B | Part D |
|---|---|---|
| $103,000/$206,000 | $69.90 | $12.20 |
| $129,000/$258,000 | $174.70 | $31.50 |
| $161,000/$322,000 | $279.50 | $50.70 |
| $193,000/$386,000 | $384.30 | $70.00 |
| $500,000/$750,000 | $419.30 | $76.40 |
The government adjusts the income brackets every year to reflect changes in the cost of living. Whether you have Medicare Part D coverage plays into your final bill.
You have to pay a Part B fee if you make more than $97,000 ($103,000 in 2024) as an individual or $194,000 ($206,000 in 2024) as a household. However, you only have to pay a Part D fee if you have a Part D policy or if you have a Medicare Advantage plan with prescription drug coverage.
How to avoid an IRMAA
You can avoid paying an IRMAA either by lowering your taxable income or by making an appeal to the Social Security Administration (SSA). Lowering your taxable income is the best way to try to avoid an IRMAA in the future. You can also appeal an IRMAA decision directly with the SSA.
Lower your taxable income
You can take steps to decrease future IRMAA payments by lowering your taxable income below the limits set by Medicare. For example, switching from an IRA to a Roth IRA while you're still working means you'll pay more in income taxes now, and less in retirement when you'll be eligible for Medicare.
Remember, your IRMAA is based on your income taxes from two years ago.
Steps you take to lower your taxable income in 2023 won’t affect your IRMAA requirement until 2025.
If you're still working, but you want to take steps now to lower your post-retirement income, consider using a Roth IRA or Roth 401(k). You pay taxes on a Roth IRA or 401(k) now. In exchange, you can receive tax-free distributions in retirement.
If you're already retired, you can still take a few steps to lower your taxable retirement income, and possibly head off an IRMAA requirement.
- Use a tax loss harvesting strategy to lower your annual tax bill
- Make qualified charitable contributions directly through your IRA
- Take your Social Security payments before age 72 to lower your annual retirement income
Make an appeal
If your life circumstances have changed dramatically in the last two years, you can file an appeal to eliminate or lower your IRMAA payment. The Social Security Administration (SSA) maintains a list of common qualifying events, such as marriage and job loss, on its website.
-
Marriage
- Divorce
- Death of a spouse
- Work stoppage
- Job loss
- Income loss
- Pension loss
- Loss of a rental property
Call the Social Security Administration at 800-772-1213 (TTY 1-800-325-0778) if you’ve experienced two or more qualifying events. Otherwise, you can use the SSA-44 form, available on the Social Security Administration website, to appeal your IRMAA status by mail or fax.
How does the IRMAA work?
You don’t need to opt in or sign up for the IRMAA. If you are required to pay a fee, the Social Security Administration (SSA) will send you a letter alerting you to the higher cost. Your contribution amount is automatically added to your Part B monthly cost, which is then taken from your Social Security payments.
If you’ve chosen to delay receiving Social Security, you can pay online through the Social Security Administration website. You can pay for both your ordinary Medicare rates and your IRMAA fee through a bank account transfer or with a debit or credit card.
Part B immunosuppressive drug coverage
Medicare covers kidney transplants for people suffering from end-stage renal disease regardless of age. If you're under 65, however, Medicare only covers vital immunosuppressive drugs for 36 months after the operation.
Beginning this year, you can continue to receive Medicare Part B coverage specifically for immunosuppressive drugs even if you no longer qualify for Medicare Part B. However, to access your monthly prescription you must pay a monthly rate of $97.10 ($103.00 in 2024), plus an IRMAA fee if you're a high-earner.
2023 IRMAA brackets for Part B immunosuppressive drugs
2021 income (single/joint) | Fee |
|---|---|
| $97,000/$194,000 | $64.70 |
| $123,000/$246,000 | $161.80 |
| $153,000/$306,000 | $258.90 |
| $183,000/$366,000 | $356.00 |
| $500,000/$750,000 | $388.40 |
2024 IRMAA brackets for Part B immunosuppressive drugs
2022 income (single/joint) | Fee |
|---|---|
| $103,000/$206,000 | $68.70 |
| $129,000/$258,000 | $171.70 |
| $161,000/$322,000 | $274.70 |
| $193,000/$386,000 | $377.70 |
| $500,000/$750,000 | $412.10 |
Frequently asked questions
What is an IRMAA?
An IRMAA is a fee that’s added to your Medicare Part B and Part D rates when your income exceeds a certain threshold. The IRMAA fee operates on a sliding scale, so you pay more as your income increases.
Does the IRMAA apply to Medicare Advantage plans?
Yes, an IRMAA applies to both Original Medicare and Medicare Advantage (also known as
What tax year are 2023 Medicare IRMAA rates based on?
Your IRMAA for 2023 is based on your tax filings from 2021. The government uses a two-year lag time when determining what IRMAA income bracket you fall into.
If your income has changed dramatically in the past two years, you can fill out an SSA-44 form to file an appeal with the Social Security Administration.
Sources
SSA.gov provided a list of qualifying life events that allow for an IRMAA appeal. Income data for 2023 and 2024 is from the Centers for Medicare & Medicaid Services (CMS), and details about deduction eligibility for charitable contributions are from IRS.gov.
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