Projected Medicare Premiums for 2026, Including IRMAA Rates and Surcharges for Parts B and D
The Medicare Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge that some Medicare beneficiaries pay in addition to the standard premiums for Part B and Part D Medicare. This surcharge is not set in stone, with projections for 2026 being estimates prepared by financial professionals, such as The Finance Buff, Harry Sit.
The IRMAA is calculated on a sliding scale with five income brackets, ranging from individuals with income less than or equal to $109,000 (with no surcharge) to those with income more than $500,000. For those with income more than $109,000 and less than or equal to $137,000, the projected total Part B Premium plus IRMAA is $289.10, while for those with income more than $500,000, it is $702.10.
For married couples filing jointly, the projected total Part D Premium plus IRMAA for those with income more than $410,000 and less than or equal to $750,000 is the Premium plus $83.30, and for those with income more than $750,000, it is $91.00.
It is essential to note that the IRMAA has a two-year lag time, meaning whether you pay an IRMAA in a given year depends on your tax returns from two years ago. This means that the 2026 IRMAA brackets and surcharge amounts will be released by Medicare closer to the fourth quarter of 2025, typically by mid-October during Open Enrollment.
The IRMAA applies to all Medicare beneficiaries whose taxable income exceeds certain thresholds, including those with Medicare Advantage plans that include prescription drug coverage. Even if your employer or another third party pays your Part D premiums, you are still responsible for paying the Part D IRMAA surcharge directly to Medicare.
The income used to determine the IRMAA comes from sources typically used by many retirees, including taxable distributions from traditional IRAs, 401(k)s, 403(b)s, and Social Security benefits. To create a MyMedicare account, you need to know your Medicare number and your Medicare Part A start date, which can be found on your Medicare card. You can pay your Medicare IRMAAs online through your MyMedicare account or your bank's bill pay service.
Projections suggest a modest increase of about 1.02% for the 2026 income thresholds if CPI-U remains consistent. The IRMAA brackets are adjusted for inflation each year, except for the 5th bracket, which is currently frozen and can be indexed for inflation beginning in 2028.
To avoid the risk of a one-time spike in income that could trigger the IRMAA, it is advisable to properly time a Roth conversion and learn more about strategies such as how to lower taxes on required minimum distributions that could otherwise trigger the surcharge.
The Medicare Trustees annual report provides projections for Medicare program costs, and for 2026, Part B surcharges are expected to increase by an average of 1.04%, while Part D surcharges are projected to increase by more than 6.00%. The 2026 surcharge projections were based on the Medicare Trustees 2025 report.
It is crucial to assess your likelihood of paying the IRMAA by getting out your 2024 tax return and looking at the 2025 IRMAA brackets and the projected brackets for 2026. By doing so, you can make informed decisions about your Medicare coverage and plan for any potential increases in your premiums.
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