2025 IRMAA Brackets for Medicare Part B

The Income-Related Monthly Adjustment Amount (IRMAA) is one of those things in life you hope you never have to deal with, like realizing your favorite show got canceled. For folks on Medicare Part B in 2025, it’s something you should be aware of, especially if your income has nudged up a bit. IRMAA can mean higher premiums for Part B if you make over a certain amount of money each year.

In 2025, there are different IRMAA brackets that determine how much extra you’ll pay on top of your standard Part B premium. Think of these brackets as income levels that say, “You’ve done well, but now you’re going to pay a little more for it.” Let’s dive in and take a look at these IRMAA brackets for Medicare Part B in 2025.

What Are the IRMAA Brackets?

The IRMAA brackets are based on your Modified Adjusted Gross Income (MAGI) from two years ago. So, in 2025, Medicare looks at your 2023 income tax returns. The more you made, the more you’ll pay in IRMAA. Here’s how it breaks down:

1. $97,000 or less (individual) or $194,000 or less (married filing jointly)
   • You’ll pay the standard Medicare Part B premium. Enjoy the ride at this level.
2. $97,001 – $123,000 (individual) or $194,001 – $246,000 (married filing jointly)
   • You’ll start paying extra. Expect to see about $68.00 tacked on top of your monthly premium.
3. $123,001 – $153,000 (individual) or $246,001 – $306,000 (married filing jointly)
   • Here it jumps to an additional $170.00 a month.
4. $153,001 – $183,000 (individual) or $306,001 – $366,000 (married filing jointly)
   • You’re looking at another $272.00 added on.
5. $183,001 – $500,000 (individual) or $366,001 – $750,000 (married filing jointly)
   • Buckle up for an extra $374.00 per month.
6. Above $500,000 (individual) or $750,000 (married filing jointly)
   • Now it’s a hefty extra $476.00 each month.

Quick Note: The Catch with IRMAA

Just when you thought that was complicated enough, here’s a twist: IRMAA also applies to Medicare Part D. Yes, your prescription drug plan might cost more too. The more you make, the more you’ll pay across the board. So if you hit these higher income levels, prepare for IRMAA’s double dip—both for Part B and Part D.

How to Avoid the IRMAA Surprise

The truth is avoiding IRMAA isn’t exactly easy. Unless you suddenly decide to retire in a yurt and stop working, income is income. But here are a few strategies you might consider:

1. Roth IRA Conversions
   These can be helpful because Roth withdrawals in retirement don’t count as taxable income for Medicare purposes.
2. Charitable Donations
   By donating to charity from an IRA (known as a Qualified Charitable Distribution), you can reduce your taxable income.
3. Income Management
   Try to keep your income under certain thresholds to avoid IRMAA altogether. It’s a bit like a high-stakes game of Limbo—how low can you go?

Henry Beltran’s Take on IRMAA

According to Henry Beltran, the owner of Medicare Advisors Insurance Group LLC, IRMAA is one of those things that catches many people by surprise. “A lot of folks don’t even know it exists until they open their mail one day and see their premium just jumped,” he says. “It’s like finding out your favorite pizza place charges extra for cheese now.”

He emphasizes that it’s really important to plan ahead for retirement income, especially since a few dollars more in earnings can put you into the next IRMAA bracket. “It doesn’t take much to go from one tier to the next and suddenly you’re paying hundreds more a year in premiums.”

Common IRMAA Misconceptions

When it comes to IRMAA there are a few common misconceptions that trip people up:

1. “It applies to everyone on Medicare.”
   Nope! It only applies to those making over a certain income level. So if you’re below the threshold, you’re in the clear.
2. “It’s based on my current income.”
   Actually, it’s based on your income from two years ago. So if you just retired, that big salary from a couple of years ago could still come back to haunt you.
3. “There’s nothing I can do about it.”
   Wrong! You can file an appeal if you’ve had a major life-changing event, like retirement or the death of a spouse. This is known as a request for reconsideration.

Henry’s Advice for IRMAA Appeals

Henry Beltran suggests that if you’ve had a significant drop in income, you shouldn’t just accept IRMAA as your fate. “There’s always room to argue your case,” he says. “It’s like trying to return a sweater that doesn’t fit. Sometimes you’ve just gotta ask for a refund.”

Pros and Cons of Paying IRMAA

Now, let’s be real, there’s not a lot of pros to paying IRMAA. But to keep things balanced let’s give it a shot:

The Pros

• You made good money. You’re paying more because you’ve earned more. It’s a bit like the government saying, “Congrats, but we’re taking our cut.”
• You’re still getting Medicare coverage. Even with higher premiums, Medicare Part B is still a great deal for health insurance.

The Cons

• You pay more, obviously. Having to pay extra for something you’ve already been paying for can feel like getting double-charged for parking.
• It’s based on old data. The two-year income lag means IRMAA can hit you even after your income drops, which feels a bit like being punished for something you did a while ago.
• It’s complicated. Let’s be honest, the system isn’t easy to navigate. It’s like trying to do taxes while blindfolded.

What Happens If You Don’t Pay IRMAA?

In short, you really don’t want to go down that road. If you don’t pay IRMAA, you could lose your Medicare coverage. That’s right, if you ignore IRMAA, Medicare could say, “Well, no coverage for you then!” It’s best to deal with it head-on and plan accordingly.

Summary: IRMAA in a Nutshell

• If you make more than $97,000 as a single filer or $194,000 as a joint filer, you’ll likely pay more for Medicare Part B in 2025.
• The higher your income, the more you’ll pay in IRMAA.
• There are strategies to reduce or avoid IRMAA, but they require planning ahead.
• If your income has recently decreased, consider filing an appeal to lower your IRMAA.

Final Thoughts From Henry Beltran

Henry Beltran adds, “IRMAA is like a mosquito bite. It’s annoying, but if you plan ahead and know it’s coming, you can handle it.” His team at Medicare Advisors Insurance Group LLC works closely with clients to help them understand these extra charges and figure out ways to minimize the impact on their wallets.

If you need help with Medicare planning or understanding how IRMAA might affect you, reach out to Henry and his team. After all, as he likes to say, “It’s better to plan now than panic later.”