IRMAA Medicare Surcharge Calculator

Your IRMAA surcharge is determined by your Modified Adjusted Gross Income (MAGI) from two years prior. For your 2026 premiums, the Social Security Administration will look at your 2024 tax return. The income brackets and surcharge amounts are adjusted annually for inflation.

Below are the projected IRMAA tiers for 2026. These figures are estimates based on a 2.5% annual growth rate from the last official numbers. Your actual premium may vary.

Note: The standard 2026 Medicare Part B premium is projected to be approximately $185.00 per month. The IRMAA surcharge is paid in addition to this amount.

Special Rule for Married Filing Separately: If you are married, file a separate tax return, and lived with your spouse at any point during the year, the rules are much stricter. If your 2024 MAGI is over $108,000, you will likely pay the highest or second-highest IRMAA surcharge.

The most important concept to understand about IRMAA is the two-year lookback. The Social Security Administration (SSA) doesn't use your current income to set your premiums. Instead, it uses the most recent tax return information it has from the IRS, which is typically from two years ago.

• For 2026 Premiums: The SSA will use your 2024 tax return.
• For 2027 Premiums: The SSA will use your 2025 tax return.

This delay can be problematic for new retirees. Your income in your first year of retirement (e.g., 2026) might be significantly lower than your income from your last full year of work (2024), yet you'll be paying Medicare premiums based on that higher, older income.

What's Included in Your MAGI?

For IRMAA purposes, your Modified Adjusted Gross Income is your Adjusted Gross Income (AGI) from your tax return plus certain tax-exempt interest. This can include:

• Wages, salaries, and bonuses
• Capital gains
• Dividends and interest (including tax-exempt municipal bond interest)
• Pension and annuity income
• Withdrawals from traditional IRAs, 401(k)s, and other pre-tax retirement accounts
• A portion of your Social Security benefits, if your provisional income is high enough
• Rental income

Notably, qualified distributions from Roth IRAs and Roth 401(k)s are not included in your AGI, and therefore do not count toward your MAGI for IRMAA calculations. This makes Roth accounts a powerful tool in managing future Medicare costs. You can model this using a retirement withdrawal calculator.

Appealing an IRMAA Decision

If your income has decreased due to a "life-changing event," you can ask the SSA to reconsider your IRMAA determination. You do this by filing Form SSA-44, "Medicare Income-Related Monthly Adjustment Amount - Life-Changing Event."

Qualifying life-changing events include:

• Marriage or divorce
• Death of a spouse
• Work stoppage or reduction
• Loss of income-producing property
• Loss of a pension
• Employer settlement payment

Retiring is a classic example of a "work stoppage" that can trigger a successful appeal.

Because IRMAA is based on income you can control, strategic financial planning in the years leading up to Medicare enrollment can save you thousands. The goal is to keep your MAGI below the "cliff" for the next tier. Even one dollar over a threshold can trigger a significant premium increase.

Here are several strategies to consider:

1. Strategic Roth Conversions: Convert funds from a traditional IRA or 401(k) to a Roth IRA in the years before the two-year lookback window begins. For example, if you enroll in Medicare at 65, your prime years for Roth conversions are in your late 50s and early 60s. While a conversion increases your MAGI in the year you do it, it reduces your future Required Minimum Distributions (RMDs) and allows for tax-free withdrawals in retirement that won't count toward IRMAA. A 401(k) to Roth IRA conversion calculator can help you model the tax impact.

2. Use a Health Savings Account (HSA): If you are eligible, an HSA offers a triple tax advantage. Contributions are tax-deductible (lowering your AGI), growth is tax-deferred, and withdrawals for qualified medical expenses are tax-free. You can pay for Medicare premiums (excluding Medigap) with tax-free HSA funds.

3. Qualified Charitable Distributions (QCDs): If you are over age 70½, you can donate up to $100,000 per year directly from your IRA to a qualified charity. A QCD satisfies all or part of your RMD but is not included in your AGI, making it a powerful tool for reducing taxes on RMDs.

4. Tax-Efficient Withdrawal Sequencing: In retirement, draw from your accounts in a strategic order. A common approach is to spend from taxable brokerage accounts first, then tax-deferred accounts (like traditional IRAs), and finally tax-free Roth accounts. This can help keep your MAGI lower in the early years of retirement. A safe withdrawal rate calculator can help you plan a sustainable income stream.

5. Manage Capital Gains: Be mindful of when you sell appreciated assets in your taxable brokerage accounts. If you are near an IRMAA threshold, consider harvesting losses to offset gains or delaying a large sale until the following year.

The calculator uses your inputs to project future income and compare it against projected IRMAA thresholds. The core calculations follow this logic:

First, it projects your MAGI for the year that will determine your premiums (two years prior to Medicare enrollment).

Projected MAGI = Current MAGI × (1 + Annual MAGI Growth Rate) ^ Years to IRMAA Base Year

Where:

• Current MAGI = Your Modified Adjusted Gross Income for the current year.
• Annual MAGI Growth Rate = Your expected average annual increase in MAGI.
• Years to IRMAA Base Year = The number of years between the current year and the tax year used for your IRMAA calculation (e.g., 2024 for 2026 premiums).

Next, it determines the total monthly surcharge by identifying your income tier and adding the corresponding Part B and Part D surcharges.

Total Monthly IRMAA = Projected Part B Surcharge + Projected Part D Surcharge

Where:

• Projected Part B Surcharge = The extra monthly amount for Medicare Part B based on your projected MAGI tier.
• Projected Part D Surcharge = The extra monthly amount for your Medicare prescription drug plan based on the same MAGI tier.

Finally, it calculates your total monthly Part B premium by adding the surcharge to the standard premium.

Total Monthly Part B Premium = Projected Standard Part B Premium + Projected Part B Surcharge

Where:

• Projected Standard Part B Premium = The base Part B premium, projected forward to your enrollment year.
• Projected Part B Surcharge = The income-related surcharge determined from the tier table.

This calculator requires just a few key pieces of information to project your potential IRMAA costs.

• Your Current MAGI & Current Year: Start with your most recent Modified Adjusted Gross Income. This is the baseline for the projection.
• Filing Status: Select the tax filing status you expect to use in retirement. The income thresholds for Married Filing Jointly are exactly double those for Single filers.
• Medicare Enrollment Year: Enter the year you (or your spouse) will enroll in Medicare, typically age 65. The calculator will automatically use the tax year from two years prior for its calculation.
• Projection Assumptions: Estimate how much you expect your income to grow annually. This helps create a more realistic projection for future years. You can also adjust the growth rate for the IRMAA thresholds themselves, though they are often tied to inflation.

What is Modified Adjusted Gross Income (MAGI) for IRMAA?

For most people, MAGI is their Adjusted Gross Income (AGI) from their tax return plus any tax-exempt interest they received (e.g., from municipal bonds). It's the key figure the government uses to determine your Medicare premiums.

Who has to pay IRMAA surcharges?

You must pay IRMAA if your MAGI from two years prior is above the established threshold for that year. For 2026, it affects individuals with a 2024 MAGI over a projected $108,000 and married couples with a 2024 MAGI over a projected $216,000.

How is IRMAA different from the standard Medicare Part B premium?

The standard premium is the base amount everyone on Medicare pays for Part B (medical insurance). IRMAA is an additional amount, or surcharge, that only those with higher incomes must pay. The standard premium for 2026 is projected to be around $185 per month.

Can I appeal my IRMAA determination?

Yes. If you've had a life-changing event (like retirement, divorce, or death of a spouse) that has caused your income to decrease, you can file Form SSA-44 to request a new decision based on your more recent, lower income.

Do Roth IRA withdrawals count towards my MAGI for IRMAA?

No. Qualified distributions from a Roth IRA or Roth 401(k) are not included in your AGI, so they do not increase your MAGI for IRMAA purposes. This makes Roth accounts a key tool for managing Medicare costs. Check out our IRA calculator to compare options.

What happens if my income drops significantly after I retire?

This is a common scenario. If you retire and your income drops, but your IRMAA is based on your higher pre-retirement income, you should file an appeal using Form SSA-44 citing "work stoppage" as your life-changing event.

Does my spouse's income affect my IRMAA if we file separately?

Yes, significantly. The "Married Filing Separately" rules are very punitive. If you lived with your spouse at all during the year and your MAGI is above the lowest threshold (projected $108,000 for 2024), you are almost certain to be placed in one of the highest IRMAA tiers.

How often are the IRMAA brackets adjusted?

The income thresholds and surcharge amounts are typically adjusted each year for inflation. The Social Security Administration usually announces the official numbers for the upcoming year in the fall.

Now that you have an estimate of your potential IRMAA, you can incorporate it into your overall retirement plan.

1. Use the Retirement Healthcare Cost Calculator to see how IRMAA fits into your total medical expense picture.
2. Explore the Retirement Needs Calculator to determine if your savings are on track to cover these and other expenses.
3. Consider running scenarios in the Health Savings Account (HSA) Retirement Calculator to see how an HSA could help offset future healthcare costs tax-free.

Last updated: July 2026