What is IRMAA, and could it raise my Medicare premiums?

IRMAA stands for income-related monthly adjustment amount. Most people pay the standard Medicare Part B premium, which is $202.90 a month in 2026 (Medicare.gov, 2026). If your income is above certain limits, Social Security adds a surcharge to your Part B premium and to your Medicare prescription drug coverage premium. It is a charge based on income, not a penalty for anything you did.

For 2026, the surcharge applies when modified adjusted gross income is above $109,000 for an individual, or above $218,000 for a married couple filing jointly (Social Security Administration, 2026). Modified adjusted gross income is your adjusted gross income plus tax-exempt interest. In 2026, the first bracket adds $81.20 a month to the Part B premium and $14.50 a month to the drug coverage premium, and higher brackets add more (Social Security Administration, 2026).

Social Security uses the most recent federal tax return the IRS provides. For 2026 premiums, that is generally your 2024 return (Social Security Administration, 2026). So income you report this year may shape your premiums two years from now, which is why a surcharge letter can feel like it came from nowhere.

If you receive a letter, it states your premium amount and the reason for the decision. If your income has gone down since that return because of a life-changing event, such as retiring, reducing work hours, a marriage or divorce, or the death of a spouse, you can ask Social Security for a new decision. You also have the right to appeal (Social Security Administration, 2026).

Several ordinary retirement events can raise income in a single year: a Roth conversion, a larger than usual distribution from a pre-tax account, required minimum distributions once they begin, and the sale of a home or other property that creates a taxable gain.

None of these is good or bad on its own. A decision can still be worth making even if it comes with a higher premium two years later. The point is to see the trade-off before you choose, instead of reading about it in a letter. What makes sense depends on your individual circumstances.

IRMAA Management is part of Signature Retirement. We map your projected income against the IRMAA thresholds and flag the years where a decision could push you into a higher premium bracket. With Signature Retirement Continuum, IRMAA exposure is monitored each year and considered alongside your income and tax decisions.

This is modeling, not a promise. Thresholds, premiums and rules change, and tax-aware planning may involve trade-offs, so results vary with each person's situation. If you are not sure where you stand, the Retirement Picture Check is a ten-question place to start.

Social Security Administration, "Premiums: Rules for Higher-Income Beneficiaries" (ssa.gov/benefits/medicare/medicare-premiums.html), 2026 amounts. Medicare.gov, "Costs" (medicare.gov/basics/costs/medicare-costs), 2026 amounts. Both were read on October 29, 2026. These figures change each year, so check the current ones before you rely on them.