What Is IRMAA?
IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge added to your Medicare Part B and Part D premiums if your modified adjusted gross income (MAGI) exceeds certain thresholds. In 2026, the surcharge can add $1,000 to $6,000+ per year to your Medicare costs.
The brackets are based on your income from two years prior. Many retirees are caught off guard when a one-time event — like selling a home, converting an IRA, or taking a large distribution — pushes them into a higher IRMAA tier.
How an Annuity Strategy Can Help
Strategic use of annuities can help manage MAGI in retirement, potentially keeping you in a lower IRMAA bracket. A qualified advisor can model scenarios specific to your income sources.