! Now updated with the 2025 IRMAA brackets
Do the IRMAA Impact Test
Watch the video on IRMAA
IRMAA Brackets Breakdown
Savings Breakdown for IRMAA
How to save thousands on IRMAA
Stop Overpaying for Medicare:
Save Thousands on IRMAA
Tens of thousands of Americans making six figures and up are paying extra for Medicare where they don’t have to. Here’s how to keep more of your money in your pocket.
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Matthew L. Ruddick, Illinois
I had no idea about the ways to end up in a different bracket for IRMAA. Even my financial advisor missed this, costing me thousands! Samantha and her team made everything so clear.
Do the IRMAA Impact Test
Watch the video on IRMAA
IRMAA Brackets Breakdown
Savings Breakdown for IRMAA
How to save thousands on IRMAA
What everyone wishes they knew about IRMAA
100% Free Access
Do the IRMAA Impact Test
Watch the video on IRMAA
IRMAA Brackets Breakdown
Savings Breakdown for IRMAA
2025 Medicare Parts A & B Premiums and Deductibles
A breakdown of how much you could be paying extra
When you sign up for Medicare, you’ll receive a letter in your mailbox saying how much you’re expected to pay with IRMAA. The amount is based on the brackets below, looking at your tax returns from two years prior.
Most people assume this is what they’re supposed to pay. WHat many don’t know is that there are two ways (one of which is an immedaite term impact) to reduce the IRMAA bracket you end up in. When you do, you end up paying less. Hundreds, if not thousands less. I explain this further down the page under “How to save on IRMAA.”
First I’ll break down the brackets here as shared on cms.gov.
IRMAA impact on Medicare Part B 2025
Since 2007, a beneficiary’s Part B monthly premium has been based on his or her income. These income-related monthly adjustment amounts affect roughly 8% of people with Medicare Part B. The 2025 Part B total premiums for high-income beneficiaries with full Part B covergae are shown in the following table:
IRMAA impact on Medicare Part B Immunosuppresive Drug Coverage
The 2025 Part B total premiums for high-income beneficiaries who only have immunosuppresive drug coverage are shown in the following table:
IRMAA impact on full Part B coverage - Married & Live(d) Together
Premiums for high-income beneficiaries with full Part B coverage who are married and lived with their spouse at any time during the taxable year, but file a separate return, are as follows:
IRMAA impact on Part B Immunosuppresive Drug Coverage Only
Premiums for high-income beneficiaries with immunosuppressive drug only Part B coverage who are maried and lived with their spouse at any time during the taxable year, but file a separate return, are as follows:
Chances are there could be a big difference in which bracket you fall in, directly impacting how much you pay in premium, depending on the tax return year that they look at to make this determination. This can make things complicated for you, as it is with many people. Most people tend to assume the Medicare and Social Security office got it right when they sent you the letter with the determination as to how much you are supposed to pay. However, what we have found in our years of experience is that in MANY cases (especially with people who had higher incomes during their working years), you are likely in the wrong bracket. Because of this, you are paying significantly more than you need to be for your IRMAA premium.
Chances are that these breakdowns are somewhat complicated for you, which it is for many people. And with that, you would simply assume that they got it right when they sent you the letter on how much you're supposed to pay. But in many cases, especially with higher incomes, this might not be the case.
Your tax filings from the past two years are used to determine in what IRMAA bracket you’re ending up. But, you may have has a life changing event that caused your income to change significantly this year. This would lead to Option 1 in “How to save on IRMAA in 2025.”
Or you’re ahead of the IRMAA getting issued – in which case you have another option which is to plan ahead and work on a Financial Plan to reallocate some of your assets. I cover this in more detail under Option 2 in “How to save on IRMAA in 2025.”
If you’d like to learn more about whether you’re actually (going to be) in the right IRMAA bracket, you can always take the IRMAA Impact Test 2025 or speak with me and my team directly.
But first, let’s break down what these “Two Options to Save on IRMAA” are in more detail.
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Do the IRMAA Impact Test
Watch the video on IRMAA
IRMAA Brackets Breakdown
Savings Breakdown for IRMAA
Let's break down how to save on IRMAA
Chances are you're in the wrong IRMAA bracket.
Here's what that means and how to change it.
Spoiler alert - you can keep thousands in your pocket
by Samantha Katchen, Financial Planner and Licensed Medicare Specialist
Understanding the IRMAA Challenge in 2024/2025: Two ways to not Overpay for your Medicare
There are two ways to make sure you're not overpaying for IRMAA. I'll break down the basics of IRMAA to then explain your two options.
The thing is that Medicare premiums aren’t one-size-fits-all. For high-income earners, the Income-Related Monthly Adjustment Amount (IRMAA) adds a significant surcharge to your Medicare Part B and Part D premiums. In 2025, the standard Part B premium will rise to $185, but if your income exceeds specific thresholds, your premium could be hundreds if not thousands more every month.
The challenge? IRMAA surcharges are based on your income for two years prior, leaving little room for error in financial planning. That’s also where the opportunity lies.
Why Many Americans Pay More Than They Should
Many retirees overlook the cascading effects of their decisions on Medicare costs. For instance, a one-time capital gain or required minimum distribution (RMD), can unexpectedly push you into a higher IRMAA bracket, increasing your premiums for an entire year. Without careful planning, this hidden cost can drain thousands from your retirement savings. IRMAA isn’t just about paying more – it’s about how wrong financial moves today can cost you big tomorrow.
Option 1: Appealing when this year's income is lower
Most people don’t know that it is possible to appeal an IRMAA determination if your income has decreased significantly due to a qualifying life event.
Medicare bases IRMAA surcharges on your tax return from two years prior, but if your current income is substantially lower – for example, due to retirement, a marriage or divorce, or the loss of income-producing property – you can file an appeal.
This process involves submitting Form SSA-44, “Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event,” to the Social Security Administration, along with documentation supporting your claim. Successfully appealling can reduce or eliminate your IRMAA surcharge, potentially saving you thousands of dollars in Medicare premiums. Speaking with a financial expert can ensure you navigate this process effectively and maximize your chances of approval.
Option 2: Strategic Financial Planning Reduces IRMAA
Proactive strategies with your financial planning can also minimize or even eliminate IRMAA surcharges. Options include adjusting your taxable income, strategically timing RMDs, or leveraging Roth conversions to keep income below the IRMAA thresholds.
However, these tactics require an understanding of tax laws, Medicare regulations, and your personal financial picture. This complexity underscores the importance of working with a financial expert who specializes in Medicare and retirement planning.
My name is Samantha Katchen, Financial Planner and licensed Medicare Specialist operating out of Geneva, IL. I advise my top clients as a Certified Financial Planner, which also includes less common topics like how to reduce fees from IRMAA.
Together with my partner Matt Ruddick I’ve built a team of incredible people across the US under Key Retirement Solutions: highly capable advisors that get our clients set up for a very bright financial future.
Feel free to reach out if you’d like to discuss anything about your financial future, or need a second opinion on the plan that your financial advisor put together.
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If you made it this far, you may want to consider speaking with me and my team of Financial Planners
I’m not looking to pretend that IRMAA and working through reallocating your assets is something that’s easy to do. If it was we’d all be finanicla planners.
If you’re in one of the higher IRMAA brackets or generally feel you might be missing out on a proper financial plan (even if you have a financial advisor), myself and the team would be happy to have a conversation with you.
Get in touch with us through this form or contact me directly (contact details next to my profile picture).
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