The Income Related Monthly Adjustment Amount (IRMAA) is an additional charge that higher-income beneficiaries must pay for their Medicare Part B (medical insurance) and Medicare Part D (prescription drug coverage) premiums. The IRMAA is determined based on the income levels in the previous tax year.

Why Does IRMAA Exist?

IRMAA helps to ensure that those who can afford to contribute more to their Medicare program do so. This allows Medicare to maintain its financial health while providing services to all beneficiaries, including those with lower incomes.

2023 IRMAA Brackets

The following table outlines the IRMAA brackets for 2023. These amounts are based on your modified adjusted gross income (MAGI) reported on your tax return from two years prior.

Filing Status	Income Level	Part B Monthly Premium	Part D Monthly Premium
Single	$97,000 or less	$164.90	$0.00
Single	$97,001 – $123,000	$230.80	$12.20
Single	$123,001 – $153,000	$296.30	$31.50
Single	Above $153,000	$362.00	$50.70
Married Filing Jointly	$194,000 or less	$164.90	$0.00
Married Filing Jointly	$194,001 – $246,000	$230.80	$12.20
Married Filing Jointly	$246,001 – $306,000	$296.30	$31.50
Married Filing Jointly	Above $306,000	$362.00	$50.70

How to Avoid IRMAA

While it’s challenging to avoid IRMAA completely, there are ways to potentially reduce your income:

• Tax Planning: Consider working with a financial advisor to manage your income levels.
• Income-Related Deductions: Utilize deductions that can help lower your MAGI.
• Timing Income: Strategically time the realization of income or consider tax-efficient investments.

Conclusion

Understanding the IRMAA brackets is crucial for Medicare beneficiaries, especially those with higher incomes. Knowing these brackets can help in budgeting for healthcare costs in retirement. For further questions on Medicare and IRMAA, consulting with a licensed Medicare advisor can provide personalized assistance.