Official 2024 IRMAA Brackets and Planning Guide
Official Medicare IRMAA brackets for 2024 with complete income thresholds, Part B and Part D surcharges. Learn how to forecast and plan for IRMAA costs in retirement.
The 2024 IRMAA Brackets have been officially announced and represent an increase of approximately 5.9% from 2023, starting at $103,000 for an individual. These income-related monthly adjustment amounts determine how much extra you'll pay for Medicare Part B and Part D coverage based on your modified adjusted gross income.
Please keep in mind that at any point between now and the beginning of 2024, Congress or the current Presidential Administration can alter these Medicare IRMAA Brackets, but if they do not then these are the official thresholds. The Centers for Medicare & Medicaid Services (CMS) publishes these brackets annually.
Understanding the 2024 IRMAA thresholds is crucial for retirement planning, as these surcharges can significantly impact your healthcare costs. Financial advisors and retirees alike should review these brackets carefully when planning distributions from retirement accounts.
| Single MAGI | Couple MAGI | Part B Premium | Part D Surcharge |
|---|---|---|---|
| ≤ $103,000 | ≤ $206,000 | $174.70 | Premium (varies) |
| $103,000 - $129,000 | $206,000 - $258,000 | $244.60 | $12.90 |
| $129,000 - $161,000 | $258,000 - $322,000 | $349.40 | $33.30 |
| $161,000 - $193,000 | $322,000 - $386,000 | $454.20 | $53.80 |
| $193,000 - $500,000 | $386,000 - $750,000 | $559.00 | $74.20 |
| ≥ $500,000 | ≥ $750,000 | $594.00 | $81.00 |
To understand the true cost of IRMAA, it helps to see the annual amounts you'll pay at each bracket level. The table below shows the total yearly cost including both Part B and Part D surcharges.
| IRMAA Tier | Monthly Part B | Monthly Part D | Annual Total | Annual Surcharge |
|---|---|---|---|---|
| Standard (No IRMAA) | $174.70 | $0.00 | $2,096.40 | $0 |
| Tier 1 | $244.60 | $12.90 | $3,090.00 | $993.60 |
| Tier 2 | $349.40 | $33.30 | $4,592.40 | $2,496.00 |
| Tier 3 | $454.20 | $53.80 | $6,096.00 | $3,999.60 |
| Tier 4 | $559.00 | $74.20 | $7,598.40 | $5,502.00 |
| Tier 5 (Highest) | $594.00 | $81.00 | $8,100.00 | $6,003.60 |
As the table shows, the annual IRMAA surcharge can range from just under $1,000 at Tier 1 to over $6,000 at the highest bracket. For married couples where both spouses are on Medicare, these amounts double, potentially costing over $12,000 per year in additional Medicare premiums alone.
Medicare beneficiaries who file taxes as Married Filing Separately face a different set of IRMAA brackets. These thresholds are significantly lower, meaning you may pay higher premiums at lower income levels compared to those filing jointly or as single individuals.
The married filing separately status is particularly important for couples who may have lived apart during the tax year or have specific financial situations that make this filing status advantageous for other tax purposes. However, when it comes to IRMAA, this status often results in higher Medicare costs.
| MAGI Threshold | Part B Monthly Premium | Part D Monthly Surcharge |
|---|---|---|
| ≤ $103,000 | $174.70 | $0.00 |
| $103,000 - $397,000 | $559.00 | $74.20 |
| ≥ $397,000 | $594.00 | $81.00 |
Notice that for Married Filing Separately, there are only three brackets instead of six. Once your MAGI exceeds $103,000, you jump directly to paying the Tier 4 premium amounts. This represents a significant cliff effect that can cost thousands of dollars annually.
For couples considering their tax filing status, it's essential to calculate the total impact including IRMAA costs. In many cases, the additional Medicare premiums from filing separately can outweigh any other tax benefits this status might provide. Consult with a qualified IRMAA planning specialist or tax professional before making this decision.
When Congress created Medicare IRMAA back in 2003 through the passing of the Medicare Modernization Act, they ruled that the IRMAA Brackets would adjust by:
"The percentage (if any) by which the average of the Consumer Price Index for all urban consumers (United States city average) for the 12-month period ending with August of the preceding calendar year exceeds such average for the 12-month period."
So, if the CPI-U at the end of August of the current year is greater than the previous August then the IRMAA Brackets will increase. Note the inflation rate does not directly determine IRMAA costs—it's specifically tied to the CPI-U measurement.
By the way there is no language that would stop the IRMAA Brackets from going down if the CPI-U would actually deflate from year to year. You can review historical IRMAA brackets from 2007-2023 to see how these thresholds have changed over time.
In terms of all the Thresholds within the IRMAA Brackets, due to the passing of the Bi-Partisan Budget Act of 2018 the 5th Threshold in the IRMAA Brackets will not adjust for inflation until 2028.
Understanding how IRMAA brackets have changed historically helps with long-term retirement planning. The table below shows how the first tier threshold has increased over recent years:
| Year | Single Tier 1 Threshold | Couple Tier 1 Threshold | % Change |
|---|---|---|---|
| 2022 | $91,000 | $182,000 | — |
| 2023 | $97,000 | $194,000 | +6.6% |
| 2024 | $103,000 | $206,000 | +6.2% |
For a complete history, visit our comprehensive historical IRMAA brackets guide.
IRMAA is short for Medicare's Income Related Monthly Adjustment Amount which is according to the Code of Federal Regulations:
"An amount that you will pay for your Medicare Part B and D coverage when your modified adjusted gross income is above certain thresholds."
IRMAA is essentially a surcharge on your Medicare premiums through Medicare Part B and Part D coverage if you have too much income while in retirement. Understanding how IRMAA is calculated each year is crucial for retirement planning.
According to the 2022 Medicare Board of Trustees Report, currently, there are over 6.8 million people in IRMAA. These people in IRMAA make up 16.63% of all eligible Medicare beneficiaries.
By 2031, according to recent reports the number of people in IRMAA will double to 13.8 million eligible people in IRMAA. This dramatic increase is due to:
IRMAA is a revenue generator for both the Medicare and Social Security programs. For the Medicare program, IRMAA is an added cost that the person in it must pay, providing more money each year for the program.
As for Social Security, according to Congress, all IRMAA costs are automatically deducted from any Social Security benefit a person is receiving. Thus, for those who enter IRMAA, Social Security has to pay out less to them which reduces that program's obligation to pay benefits.
With both Medicare and Social Security projected by the government to be insolvent in less than 8 years, the easiest way to save these programs is to make sure more people are in IRMAA. Learn strategies to reduce your MAGI and potentially avoid IRMAA.
IRMAA is all about your Modified Adjusted Gross Income (MAGI). Understanding what contributes to your MAGI is the first step in developing strategies to reduce it.
The more MAGI you have, the higher the chances of reaching an IRMAA bracket, while having less MAGI reduces the chance of paying IRMAA surcharges. This is why proactive income planning is so important in the years leading up to and during retirement.
According to Social Security, your MAGI is the total of your adjusted gross income (AGI) and any tax-exempt interest you may have.
Both of these can be found on lines 2a and 11 of your IRS tax form 1040. Remember that IRMAA uses your tax return from two years prior, so your 2024 IRMAA is based on your 2022 tax return.
If you want to avoid IRMAA altogether, the goal is to generate income from financial instruments that do not count towards your MAGI:
*Non-Qualified Annuities – depending on certain factors, a portion of income from these annuities can be completely tax-free through the exclusion ratio. Find an IRMAA Certified Professional for guidance on which annuity strategy is best for your situation.
For detailed strategies on lowering your MAGI, read our comprehensive guide on how to reduce MAGI for IRMAA purposes.
If you feel you shouldn't be subject to IRMAA, you can file an appeal. The Social Security Administration provides several pathways for appealing your IRMAA determination.
Social Security recognizes specific life-changing events that may qualify you for an IRMAA reduction or elimination:
To appeal based on a qualifying event, complete the SSA-44 form (Medicare Income-Related Monthly Adjustment Amount - Life-Changing Event). Fill out the first 3 pages and submit it with documentation proving your life-changing event to your local SSA office.
You can find your local SSA office using the Social Security Office Locator.
Once the paperwork is submitted, all correspondence about your appeal will be mailed to you from the SSA. If the result is not satisfactory, you can request a hearing which can also be done through your local SSA office.
If you don't have a qualifying life-changing event but believe your IRMAA determination is based on incorrect or outdated tax information, you can still appeal:
Pro tip: Always be courteous to SSA representatives—they have discretion in how quickly and thoroughly they process your case. Keep copies of all documents you submit.
The 2024 IRMAA Brackets represent another annual increase, and the odds of you or someone you know reaching IRMAA at some point are continually increasing. With over 6.8 million people currently paying IRMAA surcharges—and that number projected to double by 2031—proactive planning is more important than ever.
The key strategies for managing IRMAA include:
The only way to ensure that IRMAA is never a part of your retirement is to be able to generate income from sources that don't count towards your MAGI. This requires careful planning, often years before you enroll in Medicare.
Connect with a qualified professional who specializes in Medicare IRMAA and retirement income planning.
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