Could your “retirement strategy” cause you a Medicare premium surcharge?

Could your “retirement strategy” cause you a Medicare premium surcharge?

Time to talk about IRMAA.

IRMAAincome-related monthly adjustment amount — is one of those unwelcome surprises. Yes, this is one of life’s unwelcome surprises, unfortunately, as it can confront you as you near retirement. For many, they will be in the early stages of retirement because it is related to the cost for Medicare. Read on to see how to avoid the Medicare premium surcharge.

If you get hit with a much higher Medicare premium, it could be because of something that boosted your income two years before.

per the social security admin

For Medicare beneficiaries who earn over $91,000 and who are enrolled in Medicare Part B and/or Medicare Part D, IRMAA is important to understand. Thus, not understanding could cost you more!Image of a social security card

  • It’s a potential surcharge added to the Part B and Part D premiums and high income earners usually pay more for Medicare.
  • Specifically, if your income is above a certain threshold, you will pay more for Parts B and D as a result.

These surcharges are based on your adjusted gross income (AGI) from two years earlier.


Ex (1):   As of 2022, the standard Medicare premium is $170. Single filers with an AGI from 2020 that exceeds $91,000 ($182,000 for joint filers) will pay a premium ranging from $238.10 to $578.30 per month because your premium depends on your income level.

Yes, it’s possible that you can have some say in whether you get the surcharge. It’s based on how much income is flowing to you from your various sources of income. Usually, your tax accountant would guide you through this, or even do it for you, however, sometimes the best person will be the one who helped you in your retirement planning.

Ex (2): For those single filers in the AGI range of over $91,000 to $114,000, that means your Part B premium is $238.10! That’s almost $70/month more than the standard amount of $170.

For those in the over $114,000 to $142,000 bracket, the premium is $340.20! That’s double. IRMAA surcharges for Part D (the Medicare prescription drug benefit) are also added to the regular premium for the enrollee’s plan.

Who lets you know if you owe a surcharge? The Social Security Administration.

There is much more to this!

You may be able to keep your premium under control. Learn more about IRMAA:
2022 2023 2024 Medicare Part B IRMAA Premium MAGI Brackets (


Keeping you informed…
Fred Fortson –

(720) 489-0453 – National
(682) 500-1611 – Texas

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