Ask Rusty – We Were Bitten by Medicare’s IRMAA this year; What Should I Do?
Dear Rusty: My wife and I file our taxes jointly. In 2024, I took an IRA Required Minimum Distribution (RMD) which was significantly more than I was required to take. My Medicare premiums were not affected in 2025, and our Social Security payments were not reduced. Then, our joint filing in 2025 kept us below the IRS’ “Modified Adjusted Gross Income (MAGI) level. Yet in 2026 our Medicare payments increased and our Social Security payments were reduced.
If my MAGI is below the maximum for 2025, will my regular SS payments/Medicare reductions be restored in 2027? Is there any action I need to take to ensure this will happen, or will our Medicare payments and reduced SS payments be our new norm? Signed: Worried Retiree
Dear Worried Retiree: FYI, your Medicare premiums in 2026 were affected by the large RMD you took in 2024, which caused a Medicare provision known as the “Income-Related Monthly Adjustment Amount (IRMAA)” to apply for 2026. When determining the Medicare Part B premium for next year (each fall), Medicare uses the income you reported to the IRS two years prior to calculate your Medicare Part B (and Part D) premium for the upcoming year.
If you exceed the base “IRMAA” income threshold two years ago, then your Medicare premiums for the next year will include a supplemental amount on top of the “standard” Medicare premium for that year. The amount of the supplement depends on how much you exceed the base IRMAA threshold by (FYI, the base IRMAA threshold for 2026 for a married couple filing jointly was $218,000). If your 2024 income exceeded that initial IRMAA threshold, you paid a higher Medicare premium which also reduced your SS monthly payment (because Medicare is deducted from your SS benefit). IRMAA uses a sliding scale to determine how much more than the standard Medicare premium you will pay.
However, that will all automatically correct itself going forward. In other words, when determining your premiums for 2027, Medicare will look at your 2025 income. If your 2025 MAGI is less than the base IRMAA threshold, you (and your wife) will both automatically revert to paying the standard 2027 Medicare Part B and Part D premiums. You don’t need to take any action for that to happen; it will all be automatic.
This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at [email protected].
