IRMAA Brackets for 2024 and 2025: What You Need to Know
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IRMAA Brackets for 2024 and 2025: What You Need to Know
Introduction
The Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge that is added to Medicare Part B and Part D premiums for individuals with higher incomes. The IRMAA brackets are adjusted annually to reflect changes in the cost of living. For 2024 and 2025, the IRMAA brackets have been updated, resulting in changes to the amount of surcharge that some individuals will pay.
Understanding IRMAA
IRMAA is a way for Medicare to ensure that everyone pays their fair share of the program’s costs. Individuals with higher incomes are able to contribute more to the program through the IRMAA surcharge. The surcharge is calculated based on the individual’s modified adjusted gross income (MAGI), which is their adjusted gross income (AGI) plus any tax-exempt interest.
IRMAA Brackets for 2024 and 2025
The IRMAA brackets for 2024 and 2025 are as follows:
| Filing Status | 2024 MAGI | 2025 MAGI |
|---|---|---|
| Single | $97,000 | $101,000 |
| Married filing jointly | $194,000 | $202,000 |
| Married filing separately | $97,000 | $101,000 |
| Head of household | $145,500 | $152,000 |
Impact of the IRMAA Brackets
The updated IRMAA brackets for 2024 and 2025 will result in changes to the amount of surcharge that some individuals will pay. Individuals with MAGIs above the threshold amounts will pay a higher surcharge, while individuals with MAGIs below the threshold amounts will pay no surcharge.
For example:
- A single individual with a MAGI of $100,000 in 2024 will pay an IRMAA surcharge of $148.50 per month for Part B and $12.40 per month for Part D.
- A married couple filing jointly with a MAGI of $200,000 in 2025 will pay an IRMAA surcharge of $296.90 per month for Part B and $24.80 per month for Part D.
How to Avoid IRMAA
There are a few ways to avoid paying the IRMAA surcharge:
- Reduce your MAGI: This can be done by contributing to tax-advantaged retirement accounts, such as 401(k)s and IRAs.
- Claim deductions and credits: Certain deductions and credits can reduce your MAGI, such as the standard deduction, itemized deductions, and the earned income tax credit.
- Consider a Medicare Savings Account (MSA): MSAs are special savings accounts that can be used to pay for Medicare Part B premiums. If you have an MSA, you will not be subject to the IRMAA surcharge.
Conclusion
The IRMAA brackets for 2024 and 2025 have been updated, resulting in changes to the amount of surcharge that some individuals will pay. It is important to understand the IRMAA brackets and how they affect you so that you can plan accordingly. If you are concerned about paying the IRMAA surcharge, there are steps you can take to avoid it.
Closure
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