Published by Kiplinger.com
Written by Donna LeValley
“If you have Medicare Part B and/or Medicare Part D prescription drug coverage, you could owe a monthly surcharge based on an income related monthly adjustment amount (IRMAA). These surcharges apply to enrollees in Original Medicare and Medicare Advantage plans.”
“The 2025 IRMAA income brackets and Parts B and D surcharges have been announced. This year, Medicare beneficiaries with income over $106,000 (for single tax filers), $212,000 for joint filers and $106,000 (for married people that file separately) will pay the surcharge. For these beneficiaries, total Monthly Part B premiums will range from $259.00 to $628.90.
“Your IRMAA eligibility is determined by the Social Security Administration and represents an increase to Medicare Part B and Part D standard monthly premiums. The IRMAA surcharge 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 2025 depends on the income shown on your 2023 tax returns.
“Public sector retirees that received a raise might be fretting that the increase in benefits from the Social Security Fairness Act could trigger the IRMAA in 2026 or 2027. Unfortunately, those retirees will have to wait to find out if the increase in monthly benefits will be big enough to do so. The Social Security Administration hasn’t released any information about when the increases will be paid, other then it will be a long process and may take over a year to fully implement.
“You should be mindful of the risk of a one-time spike in income that could trigger the IRMAA. For instance, timing a Roth conversion properly, you can avoid the IRMAA when you convert and when you take distributions. Learn more about strategies such as how to lower taxes on required minimum distributions.
“Here’s a look at the IRMAA and what it may cost you in 2025.”
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Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.