If you’re on Medicare, you may have heard of IRMAA, or the Income-Related Monthly Adjustment Amount. Simply put, if your income is above certain levels, you may pay more for Medicare Part B and Part D.
One of the biggest things to understand about IRMAA is that the income Social Security is looking at may not reflect what you’re making today. This comes up all the time around retirement. You may have had a great income while working, but once you retire, your income can look very different.
The good news is you may not be stuck paying the higher premium.
Did Your Income Recently Change?
Social Security allows you to request an adjustment to your IRMAA after certain life-changing events, including:
· Retirement or stopping work
· Reducing your work hours
· Marriage or divorce
· Death of a spouse
· Loss of certain pension income
· Certain losses of income-producing property
· Certain employer settlement payments
These are the qualifying events outlined by Social Security on Form SSA-44.
You May Not Have to Wait
Here’s where this can become really helpful. You may not have to wait until you file your next tax return for Social Security to recognize your lower income.
If you’ve had a qualifying life event, Social Security may allow you to provide your actual or estimated income for a more recent year.
For someone who just retired, that can make a big difference. If Social Security is basing your Medicare premium on income you earned while you were still working, it may be worth taking another look.
Don’t Forget About IRMAA When Planning
IRMAA is also something we think about when looking at the bigger financial picture. Roth conversions, IRA withdrawals, capital gains and other income can all impact your income for Medicare purposes.
That doesn’t mean you shouldn’t do a Roth conversion or realize a gain. It just means IRMAA should be part of the conversation.
If you’re approaching Medicare or recently retired, take a few minutes to understand how your income may impact your premiums. And if you’re already paying IRMAA and your income has changed, don’t assume you’re stuck with it. A little planning could potentially save you money.
Sources:
Social Security Administration, Form SSA-44: Medicare Income-Related Monthly Adjustment Amount, Life-Changing Event
Medicare Interactive, Appealing a Higher Part B or Part D Premium (IRMAA)
David Rae, Forbes, Medicare Premiums: Who Can File an IRMAA Appeal and How to Do It, September 22, 2026