Irmaa brackets 2026 - Understanding Medicare IRMAA in 2026 and Surcharges for Parts B and D

Worried about higher Medicare costs in 2026? If your 2024 income was over $109,000 (single) or $218,000 (married), you’ll likely face IRMAA the Income-Related Monthly Adjustment Amount. For 2026, projected IRMAA surcharges for Part B could add up to $448.60/month, and for Part D, up to $91/month, on top of your base premium.

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These costs are tied to your 2024 tax return, inflation, and recent Medicare projections. In this guide, we break down the 2026 IRMAA brackets, surcharges, and smart ways federal retirees can reduce their exposure.

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Recent Updates on 2026 Medicare IRMAA Projections

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The 2026 Medicare income-related premium (IRMAA) projections were calculated by Harry Sit, a contributing author to The Bogleheads’ Guide to Retirement Planning, using data from the 2025 Medicare Trustees report and the May 2025 Consumer Price Index (CPI). Surcharge projections for high-income beneficiaries are also based on the 2025 Trustees report.

You can find the official data in:

• Table V.E3 (Page 205): Part B Income-Related Premium Information
  
  
• Table V.E4 (Page 208): Part D Income-Related Premium Information
  
  

Under the Medicare Modernization Act, IRMAA brackets are adjusted annually based on inflation. Specifically, they increase by the percentage that the average CPI for the 12 months ending in August exceeds the previous year’s average.

Medicare costs, including surcharges, are projected to rise by approximately 6% in both 2024 and 2025, reflecting the program’s expected cost increases.

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Key Factors That Determine Your 2026 IRMAA Liability

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To understand what you’ll pay in IRMAA for 2026, it’s important to grasp the key components driving these projections:

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1. Modified Adjusted Gross Income (MAGI) from 2024

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Your 2026 IRMAA is based on your income from two years prior. That means your 2024 MAGI as reported on your tax return determines what you’ll pay in Medicare surcharges in 2026.

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2. Inflation (CPI-U)

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IRMAA brackets are indexed for inflation based on the Consumer Price Index for All Urban Consumers (CPI-U). Current forecasts estimate a modest 1.02% increase in IRMAA thresholds for 2026 if inflation continues at today’s pace.

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3. Medicare Trustees’ Report

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According to the Medicare Trustees’ 2025 report:

• Part B surcharges are expected to rise by an average of 1.04%
  
  
• Part D surcharges may increase by over 6%
  

These changes can affect your overall Medicare premium, even if your base premium remains relatively stable.

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Projected IRMAA Brackets 2026 and Surcharges

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Medicare will officially determine the irmaa 2026 update charges in Q4 of 2025, using your 2024 tax filing as the reference. The first four IRMAA brackets are inflation-indexed annually, while the fifth bracket remains frozen until 2028.

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Don’t let unexpected IRMAA surcharges drain your retirement savings! Smart planning now can save you thousands in higher Medicare premiums down the road. Federal retirees are discovering how to legally reduce their IRMAA exposure and spots for personalized pension reviews are filling fast. Secure your free consultation today before it’s too late!

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Official Source Mentions for Credibility

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These estimates align with the annual Medicare Trustees’ Report and CMS guidelines, which use CPI-U data to determine income brackets. While the numbers below are projections, they closely follow the methodology used by Social Security and Medicare for setting official thresholds.

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CPI-U Tracking & Future Updates

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These 2026 IRMAA projections are based on the most recent Consumer Price Index for Urban Consumers (CPI-U) data. The official Medicare thresholds for 2026 will be finalized in fall 2025, once the July, August, and September CPI-U figures are released. We will update this page as soon as CMS and the Medicare Trustees publish the confirmed amounts.”

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Why IRMAA Matters for Federal Retirees?

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IRMAA adds a significant extra cost to your Medicare premiums if you cross certain income thresholds. Unfortunately, many federal retirees may find themselves pushed into higher brackets due to:

• TSP withdrawals
  
  
• Annuity payments
  
  
• Required minimum distributions (RMDs)

Update Schedule: This article will be updated as new CPI-U data is released in late 2025 and when CMS publishes the official IRMAA brackets for 2026. Bookmark this page or join our email list to get notified when the final numbers are available.

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‍How IRMAA Is Collected

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‍When you’re subject to IRMAA, the surcharge isn’t paid directly to your Medicare plan. Instead, it’s administered through Social Security and the Centers for Medicare & Medicaid Services (CMS). Here’s how it works in practice:

• Automatic Deduction (Most Common)
  If you’re already receiving Social Security benefits, IRMAA surcharges for both Part B and Part D are automatically deducted from your monthly check. You don’t have to set up separate payments your Social Security statement will show the reduced amount after the IRMAA deduction.
  
  
• No Social Security Yet?
  Many federal retirees defer Social Security until later to maximize benefits. If you’re not collecting Social Security or if your monthly benefit is too small to cover the full IRMAA amount CMS will send you a bill (known as a “Medicare Premium Bill”). These usually arrive quarterly and must be paid directly.
  
  
• Payment Options
  You have multiple ways to pay your IRMAA surcharge:
  
  
  • MyMedicare.gov account – The most convenient and secure option. Payments can be made directly online, and you can also set up auto-pay.
    
    
  • Bank Bill Pay Service – You can use your bank’s online bill pay feature to send payments directly to CMS.
    
    
  • By Mail – CMS still accepts checks, though this method is slower and less secure.
    
    

Important: Even if your employer, union, or a third party covers your Part D premium, you’re still personally responsible for the IRMAA surcharge. Medicare bills this directly to you so you can’t avoid it through a group plan

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How to Lower or Avoid IRMAA?

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Many retirees can reduce their IRMAA exposure with careful planning:

1. Roth Conversions – Convert traditional IRA funds to Roth before hitting IRMAA thresholds.
   
   
2. Manage Capital Gains – Time the sale of appreciated assets to control MAGI.
   
   
3. Avoid RMD Surprises – Plan Required Minimum Distributions (RMDs) in advance.
   
   
4. Tax-efficient Withdrawal Strategies – Balance withdrawals from taxable, tax-deferred, and Roth accounts.
   
   
5. Report Life-Changing Events – If your income dropped due to retirement, divorce, death of a spouse, or other major event, you can request a reconsideration of your IRMAA via Form SSA-44.
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IRMAA and Medicare Advantage

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A common misconception is that IRMAA only applies if you’re enrolled in Original Medicare with a stand-alone Part D drug plan. Unfortunately, that’s not the case.

If you have a Medicare Advantage plan (Part C) that includes prescription drug coverage (often called MAPD plans), the Part D IRMAA surcharge still applies. Here’s what that means:

• Your Medicare Advantage premium (if your plan has one) is paid to your private insurer.
  
  
• Your IRMAA surcharge for drug coverage is billed separately by Medicare.
  
  

So even if your Medicare Advantage plan advertises “$0 premium,” you may still owe an additional $14.50 to $91/month in 2026 IRMAA surcharges depending on your income bracket.

This catches many retirees off guard, especially those who switch to Medicare Advantage for cost savings, only to find out IRMAA applies regardless of plan type. If you want to know abut the 2025 irma brackets then read this.

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IRMAA Appeals: Can You Avoid Higher Premiums

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If your income has dropped due to a qualifying life event such as retirement, divorce, or death of a spouse you can file Form SSA-44 to appeal your IRMAA determination. Be sure to provide supporting documentation.

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Why IRMAA Is a “Cliff”

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Unlike tax brackets, which gradually increase as your income rises, IRMAA uses a cliff system. That means the moment your Modified Adjusted Gross Income (MAGI) crosses a threshold even by a single dollar you are charged the full surcharge for the higher bracket.

• Example: If your 2024 MAGI is $137,000, you’re in the second bracket. But if your income is $137,001, you jump into the third bracket. That tiny $1 difference could increase your 2026 Medicare costs by over $100 per month, or $1,200+ per year.
  
  

This cliff effect can create expensive surprises for retirees who don’t carefully plan their withdrawals, Roth conversions, or asset sales.

Tip for Federal Retirees: Because TSP withdrawals, annuity payments, and RMDs all count toward MAGI, even a small extra distribution could push you into a higher IRMAA bracket. Coordinating withdrawals across accounts is critical to avoid unnecessary costs.

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Examples of Income Spikes That Trigger IRMAA

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Common Triggers That Push Retirees Into Higher IRMAA Brackets

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Many retirees accidentally trigger IRMAA by not anticipating how certain transactions inflate their MAGI. Here are some common culprits:

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1. Roth IRA Conversions

1. Converting traditional retirement funds into a Roth IRA can be smart long-term, but if you convert too much in one year, it may push you into a higher bracket.
   
   
2. Better approach: Spread conversions over several years to manage the tax and IRMAA impact.
   
   

2. Selling a Home or Property

1. Even if your primary residence qualifies for the capital gains exclusion ($250,000 single / $500,000 married), selling a second home, rental property, or land could create significant taxable gains.
   
   
2. These gains can spike your MAGI, triggering IRMAA two years later.
   
   

3. Large Capital Gains from Investments

1. Selling highly appreciated stocks, mutual funds, or ETFs in one tax year may push your MAGI over the IRMAA threshold.
   
   
2. Tax-loss harvesting or staggered sales can help offset this.
   

4. One-Time Retirement Account Withdrawals

1. Taking a large lump sum from your TSP, 401(k), or IRA for example, to pay off a mortgage—can elevate your MAGI for that year.
   
   
2. This not only increases your tax bill but also raises your Medicare premiums down the line.
   

Even if these income events are one-time only, the consequences linger: Medicare will assess your 2026 IRMAA using your 2024 tax return. That means a financial move you make today could impact your healthcare costs two years from now.

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How Federal Pension Advisors Can Help?

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Planning for Medicare costs is more than just checking a premium table. We specialise in helping federal employees:

• Project future Medicare expenses
  
• Optimise TSP and annuity withdrawals
  
• Lower IRMAA exposure legally and efficiently
  
• Free Pension & Benefits Review
• IRMAA Planning & Tax Strategy
• Medicare Education for Retirees

Take control of your Medicare premiums before they control your retirement.

Ready to protect your retirement from IRMAA surprises?

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Schedule your free review today at Federal Pension Advisors and get clarity on your Medicare future.

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FAQs

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What is IRMAA for Medicare?

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IRMAA is a surcharge added to Medicare premiums for high-income earners. It applies to Parts B and D.

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How is IRMAA calculated?

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IRMAA is based on your Modified Adjusted Gross Income (MAGI) from two years prior, as reported by the IRS.

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How do I appeal an IRMAA decision?

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File SSA-44 with Social Security if you had a qualifying life-changing event. Include proper documentation.

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Can I avoid IRMAA?

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You can plan strategically to reduce income or manage MAGI through tax planning, but the surcharge cannot be avoided once your income exceeds certain limits.

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