What is Part B IRMAA?
Part B IRMAA stands for Income-Related Monthly Adjustment Amount. It is a surcharge that is added to the Medicare Part B premium for higher-income enrollees. The surcharge is based on the enrollee’s Modified Adjusted Gross Income (MAGI) as reported on their most recently filed tax return. In 2021, the Part B IRMAA surcharge applies to individuals who earn more than $88,000 per year and couples earning more than $176,000 per year. The income brackets and associated premiums for the 2021 IRMAA surcharge are as follows:
2023 Medicare Part B IRMAA Premium Brackets
The income brackets and associated premiums for the 2023 IRMAA surcharge have not yet been released. However, it is expected that the income brackets and premiums will remain largely unchanged from 2021. It is anticipated that the Part B IRMAA surcharge will continue to apply to individuals who earn more than $88,000 per year and couples earning more than $176,000 per year. The exact income brackets and associated premiums for the 2023 IRMAA surcharge will be released closer to the beginning of 2023.
How Can I Avoid the IRMAA Surcharge?
The best way to avoid the IRMAA surcharge is to maintain a household income that is below the applicable income thresholds. If your income exceeds the thresholds, it is possible to lower your income by taking advantage of certain tax-advantaged investments such as a Health Savings Account (HSA) or a Retirement Savings Account (RSA). Additionally, you may be able to reduce your income by taking advantage of deductions or credits such as the Earned Income Tax Credit (EITC). Finally, you may be able to reduce your income by making charitable contributions. It is important to note that all income should be reported on your tax return in order to accurately calculate your adjusted gross income and determine your eligibility for the IRMAA surcharge.
Conclusion
The 2023 Part B IRMAA premiums and income brackets have not yet been released. It is expected that the income brackets and premiums will remain largely unchanged from 2021. The best way to avoid the IRMAA surcharge is to maintain a household income that is below the applicable income thresholds. Additionally, you may be able to reduce your income by taking advantage of certain tax-advantaged investments, deductions, credits, and charitable contributions.