The 2026 IRMAA Brackets with inflation remaining in check should slightly increase in terms of the Income Thresholds while the Surcharges will jump a little bit higher.
Why the Change in the 2026 IRMAA Brackets – Income Thresholds
The corresponding IRMAA Income Thresholds are set to adjust according to the change in the Consumer Price Index for Urban Consumers (CPI-U) from the September of the following year to August of the new.
Granted, it has only been a few months since the last adjustment, but the CPI-U has not only stabilized it has actually dropped from November to December and with the new Presidential Administration coming in it may continue on this pace for a while.
If the CPI-U remains this consistent over the next 7 months the 2026 IRMAA Thresholds will only increase by about 1.02%.
- The CPI-U in 2024 at the end of August = 310.955.
- Projected CPI-U in 2025 by the end of August = 314.138
- Difference = 1.02%
The Thresholds for 2026, at this rate of the CPI-U, will be:
| 2026 IRMAA Thresholds | |
| Individual MAGI | Couple MAGI |
| < $107,000 | $214,000 |
| $107,000 – $134,000 | $214,000 – $268,000 |
| $134,000 – $169,000 | $268,000 – $338,000 |
| $169,000 – $202,000 | $338,000 – $404,000 |
| $202,000 – $500,000 | $404,000 – $750,000 |
| > $500,000 | > $750,000 |
Why the Change in the 2026 IRMAA Brackets – Part B and D Surcharges
The IRMAA Surcharges are set by the Centers for Medicare Services (CMS) on an annual basis and each year the Trustees of Medicare provide projections on where the program may be heading.
According to the Trustees’ 2024 Report the surcharge for Part B across each Threshold will only increase by 1.04% on average.
The Part D Surcharges, however, will increase by more than 6.00%.
The Projected 2026 IRMAA Brackets
With the information that the Trustees provide the 2026 IRMAA Brackets may just be:
| 2026 IRMAA Brackets | |||
| Individual MAGI | Couple MAGI | Part B | Part D |
| < $107,000 | $214,000 | $186.90 | Premium (varies) |
| $107,000 – $134,000 | $214,000 – $268,000 | $261.70 | Premium + $14.50 |
| $134,000 – $169,000 | $268,000 – $338,000 | $373.80 | Premium + $37.50 |
| $169,000 – $202,000 | $338,000 – $404,000 | $485.90 | Premium + $60.40 |
| $202,000 – $500,000 | $404,000 – $750,000 | $598.10 | Premium + $83.30 |
| > $500,000 | > $750,000 | $635.50 | Premium + $91.00 |
What is IRMAA?
IRMAA is short for Medicare’s Income Related Monthly Adjustment Amount.
It is a surcharge on top of your Medicare Part B and D premiums if you are earning too much income.
In simpler terms, IRMAA is a progressive ta on your income through Medicare as the more income you earn the greater your tax will be.
What is Income for IRMAA?
The Social Security Administrations determines IRMAA by your modified adjusted gross income or MAGI.
Your MAGI is everything on lines 2a and 11 of the IRS form 1040.
Some examples of income that will count towards your MAGI and IRMAA are:
| Income Source for IRMAA include | |
| Taxable Social Security | Rental Income |
| Wages | Pension Income |
| Interest / Tips | Alimony |
| Capital Gains | All Dividends |
| Distributions from any | |
| Traditional IRA | Traditional IRA |
| Qualified Annuities | SEP Accounts |
| Keough Account | Traditional 403(b) |
What should not count as Income towards your MAGI and IRMAA are:
| Income that does NOT count towards IRMAA | |
| Life Insurance | Health Savings Accounts (HSA’s) |
| Roth Accounts | 401(h) Plans |
| Primary Residency | Portions of QLAC Annuities |
How do you pay IRMAA if you reach it?
Unfortunately, you pay for IRMAA directly from any Social Security benefit you are receiving.
If you are not receiving Social Security benefits or if your benefit is not enough to cover your IRMAA surcharges you will receive a bill from the Social Security Administration (SSA), typically, on a quarterly basis.
Note: According to the Social Security Board of Trustees the cost-of living- adjustment (COLA) for Social Security benefits going into 2026 is expected to be no higher than 2.20%.
If you do reach IRMAA in 2026, please plan for a decrease in monthly benefits from Social Security for the year.
Conclusion to 2026 IRMAA Brackets
With the rate of inflation apparently dropping it appears that the Thresholds for IRMAA in 2026 will increase by just over 1.00%.
Thankfully, though, the surcharges, for at least IRMAA-B won’t increase by much more, however, the surcharges for IRMAA-D will grow by over 6.00%.
Remember, the only way to be in IRMAA is to have too much reportable income.
By planning properly before retirement and utilizing Life Insurance as Roth Conversions there is no reason to ever have to pay this tax.
TAKE THE CONFUSION OUT OF IRMAA
If you are here you already know about IRMAA..but do you know how much it will reduce your retirement income?
Run your IRMAA Stress Test to see what escalating costs can do to your retirement plan over the next couple of years.
Each Year Medicare costs increase by over 7%, that is more of YOUR MONEY gone…
Don’t be one of the increasing number of people that will be overcharged simply because you were never told about this.
If you are here you already know about IRMAA..but do you know how much it will reduce your retirement income?
Run your own IRMAA Stress Test to see what IRMAA could do to your retirement plan. Gain insights you can share with your advisor and CPA, to plan correctly.
* 20 pages of information
*Access to help if you need to do an appeal
*ability to access your report anywhere
Don’t be one of the increasing number of people that will be surcharged simply because you were never told about this.
