What is Medicare’s IRMAA
(Income Related Monthly Adjustment Amount)
Medicare’s Income Related Monthly Adjustment Amount or IRMAA is simply a tax on income through Medicare for those whose income falls into premium increase brackets.
The Federal Code of Regulations defines IRMAA more eloquently as it states that it is:
“An amount that you will pay in addition to the Medicare Part B standard monthly premium plus any applicable increase in that premium for your Medicare Part B coverage when your modified adjusted gross income is above a certain threshold”.
Basically, the more income you have in retirement that the Internal Revenue Service can see and tax the more you will pay for your Medicare coverage.