Understanding Social Security IRMAA: The Hidden Cost of a Higher Retirement Income

Written by John Register, July 2025

Medicare Part B and Part D premiums are determined by your Modified Adjusted Gross Income (MAGI).  The Social Security Administration (SSA) looks at your MAGI for the past two years to determine if an Income Related Monthly Adjustment Amount (IRMAA) will apply.   This adjustment is simply an additional charge which you may pay above the base Medicare premiums. 

Many Medicare recipients are shocked when they see this surcharge and we want you to be prepared should you be subject to IRMAA.

Your Medicare premiums may be subject to IRMAA if your 2025 individual income exceeds $106,000 or $212,000 combined income for a couple.

Certain tax-exempt interest and other income not included in your AGI may count toward the income levels subject to IRMAA.

Fortunately, SSA revaluates IRMAA every year, so your Medicare premium may change if your income reduces. 

SSA does allow you to appeal IRMAA by using Form SSA-4 “Medicare Income – Related Monthly Adjust Amount – Life Changing Event”.   You will need documentation to support your claim of life changing event such as retirement papers or death certificate. 

You have 60 days from the date of IRMAA notice to file the appeal, however, if you miss the deadline, you can still appeal but will need to state why the delay and provide strong documentation.

For more information, visit www.Ssa.gov – choose Medicare  - Request to lower an Income-Related Monthly Adjustment Amount (IRMAA)

The following table shows Medicare Premiums based on 2023 Modified Adjusted Gross Income.

References:

ssa.gov; accessed July 2025