Vedanth Bhartee
Writer · Reviewed by Richard ChanUpdated Jun 12, 2026
1 min read
The Income-Related Monthly Adjustment Amount (IRMAA) is an extra surcharge added to Medicare Part B and Part D premiums for higher-income beneficiaries.
IRMAA is calculated using your modified adjusted gross income (MAGI) from your IRS tax return from two years prior.
Beneficiaries who experience a life-changing event that significantly reduces their income can appeal to the Social Security Administration to have their IRMAA reduced or eliminated.
Earning a higher income in retirement is undoubtedly a win, but it can also trigger a frustrating surprise when it comes to your healthcare costs: the Income-Related Monthly Adjustment Amount, or IRMAA. This Medicare provision essentially levies a surcharge on your Part B and Part D premiums if your earnings exceed a certain threshold. If you've been a diligent saver, understanding IRMAA is absolutely vital so you aren't blindsided by unexpected deductions from your Social Security check. Let's break down exactly how these surcharges are calculated, what the current income brackets are, and how you can strategically plan for—or even appeal—these extra costs.