The Medicare income-related monthly adjustment amount (IRMAA) is a surcharge on Medicare Part B (medical insurance) and Medicare Part D prescription drug plan premiums. It applies only to Medicare beneficiaries with a modified adjusted gross income above $106,000 (individual return) or...
IRMAA is an additional premium that higher-income Medicare beneficiaries must pay for Medicare Part B and Part D (prescription drug coverage). The IRMAA is based on the beneficiary’s modified adjusted gross income (MAGI) from two years prior. If an individual’s income exceeds certain income...
As mentioned previously, your Part B and D premiums are based off of your Modified Adjusted Gross Income or MAGI. The calculation for MAGI is slightly different and unique from the typical Adjusted Gross Income (AGI) calculation as MAGI includes certain income “...
IRMAA could potentially add to that cost since capital gains are included in calculating your modified adjusted gross income. On top of that, IRMAA is a so-calledcliff penalty, meaning that—if you breach an IRMAA income threshold by $1—you have to pay the full surcharge for that income...