IRMAA Brackets 2026 Explained — Full Surcharge Chart + How to Stay Under
What IRMAA actually is
IRMAA stands for Income-Related Monthly Adjustment Amount. It is the surcharge the Social Security Administration tacks on to your Medicare Part B and Part D premiums once your modified adjusted gross income (MAGI) crosses certain thresholds. The surcharge is permanent for the year — if you cross a bracket by $1, you pay the full surcharge for all twelve months.
IRMAA uses a two-year lookback: your 2026 Medicare premium is based on the MAGI shown on your 2024 tax return. That timing matters because most people only notice IRMAA after the bill arrives in January — two full tax years after they could have done anything about it.
The surcharge applies to every Medicare-enrolled individual in your household. A married couple both on Medicare who cross a single bracket pays the surcharge twice — once each.
Full 2026 IRMAA bracket table
Below are the IRMAA brackets and total monthly premiums for 2026 (Part B base premium is approximately $185.00/month for 2026). MAGI is your 2024 modified adjusted gross income; the bracket determines what you pay now.
| 2024 MAGI (Single) | 2024 MAGI (MFJ) | Part B Surcharge | Total Part B | Part D Surcharge |
|---|---|---|---|---|
| ≤ $103,000 | ≤ $206,000 | $0.00 | ~$185.00 | $0.00 |
| $103,001 – $129,000 | $206,001 – $258,000 | $69.90 | ~$254.90 | $13.70 |
| $129,001 – $161,000 | $258,001 – $322,000 | $174.70 | ~$359.70 | $35.30 |
| $161,001 – $193,000 | $322,001 – $386,000 | $279.50 | ~$464.50 | $57.00 |
| $193,001 – $500,000 | $386,001 – $750,000 | $384.30 | ~$569.30 | $78.60 |
| > $500,000 | > $750,000 | $419.30 | ~$604.30 | $85.80 |
The math nobody shows you: Crossing the top bracket as a married couple both on Medicare costs ($419.30 + $85.80) × 12 × 2 = $12,122 per year in surcharges alone — on top of base premiums.
The $1-over cliff: real examples
IRMAA brackets are cliffs, not phase-ins. One dollar over $103,000 MAGI as a single filer costs you the full first-bracket surcharge for every month of 2026. Same for crossing into the second, third, fourth, or fifth tier.
Example 1: The Roth conversion that backfired
Single retiree, MAGI of $128,500 from pensions and dividends. She converted $700 of Traditional IRA to Roth in December 2024 to "use up" remaining headroom in her 22% bracket. That $700 pushed her 2024 MAGI to $129,200 — into the second IRMAA tier. Result: she pays an extra ($174.70 - $69.90 + $35.30 - $13.70) = $126.40/month in 2026 surcharges, or $1,516.80 for the year. The federal tax on the $700 conversion was $154. Net cost of the "optimization": $1,517 in IRMAA, $154 in income tax, $1,517 worse off after-tax.
Example 2: The capital gain that crossed the line
Married couple, joint MAGI tracking around $250,000 from a mix of pensions, Social Security, and dividends. They sold a rental property for $80,000 of long-term capital gain in 2024. That pushed MAGI to $330,000 — over the third bracket ($322,000 MFJ). Their IRMAA jumps from the second tier ($174.70 each) to the third ($279.50 each). Annual surcharge increase across both spouses: ($279.50 - $174.70) × 12 × 2 = $2,515.20/year for 2026.
Example 3: The RMD that triggered the third tier
73-year-old widower with $1.8M IRA. First RMD: roughly $68,000. Combined with $40K Social Security and $25K pension, his 2024 MAGI hit $133,000. That crosses the second IRMAA tier. He pays approximately $2,520/year more for Medicare in 2026 than he did in 2025. A QCD strategy could have eliminated the surcharge entirely.
How MYGA tax-deferral keeps you under the cliff
This is the lever most retirees overlook. Interest credited inside a deferred MYGA does not appear on your 1040 until you take a withdrawal. That makes the MYGA a structural IRMAA defense.
The contrast:
- CD held in a taxable brokerage account: Bank sends you a 1099-INT every year for the interest credited. That interest counts toward MAGI. A $500,000 CD at 4.50% adds $22,500 to your MAGI every year — enough by itself to push many single retirees across the first bracket.
- MYGA held in a taxable annuity: Carrier credits ~5.60% annually. No 1099. No MAGI impact. The growth compounds tax-deferred until you withdraw — which you can time around lower-income years (e.g., between retirement and age 73 RMDs).
Worked example — $500,000 for 7 years, single filer with $95,000 of base MAGI:
| Year | CD at 4.50% (interest taxable) | MYGA at 5.60% (deferred) | IRMAA delta |
|---|---|---|---|
| 1 | MAGI = $117,500 (tier 1) | MAGI = $95,000 (no surcharge) | $839/yr saved |
| 2 | MAGI = $118,510 (tier 1) | MAGI = $95,000 (no surcharge) | $839/yr saved |
| 3 | MAGI = $119,565 (tier 1) | MAGI = $95,000 (no surcharge) | $839/yr saved |
| 4-7 | Continues in tier 1 (~$838/yr surcharge) | $0 surcharge | $839/yr saved each year |
| 7-year IRMAA savings | — | — | ~$5,873 |
Plus the MYGA grows 110 bps faster than the CD. Total 7-year advantage on $500K: roughly $22,000 of extra growth + $5,873 of IRMAA savings = $27,873 in the MYGA's favor, in this specific case.
Caveat: MYGA distributions are eventually ordinary income, and if you wait until 73, RMDs (if it's an IRA MYGA) can trigger the same IRMAA problem. The MYGA defers the IRMAA, it doesn't erase it. The goal is to align withdrawals with low-MAGI years.
Other IRMAA fixes worth knowing
Qualified Charitable Distribution (QCD)
If you're age 70½ or older, you can send up to $108,000 per year (2026 limit, indexed) directly from your IRA to a 501(c)(3) charity. The QCD counts toward your RMD but does not appear in your MAGI. For charitable retirees over age 73, the QCD is the single most powerful IRMAA tool available. See our QCD rules guide.
Roth conversions before age 63
IRMAA's two-year lookback means your 2026 premium is based on 2024 MAGI. So Roth conversions done at age 63 hit your 2025 MAGI, which determines your 2027 IRMAA (the year you turn 65). Convert before age 63 to keep conversions out of the IRMAA lookback window. See Roth conversion vs MYGA bucket.
Tax-loss harvesting
Realized capital losses offset realized gains and up to $3,000 of ordinary income per year. In a year when you know you're flirting with an IRMAA cliff, harvesting losses in your brokerage can pull you back under the threshold.
HSA contributions
If you have HSA-eligible coverage in your 60s, max contributions ($4,150 single / $8,300 family in 2024, plus $1,000 catch-up at 55+) reduce MAGI. You stop contributing the month you enroll in Medicare.
SSA-44 appeal for life-changing events
If your MAGI dropped due to a qualifying life event (retirement, death of spouse, divorce, loss of pension, work stoppage), you can file Form SSA-44 to ask SSA to use a more recent year. The form is short. Submit it as soon as the life event happens — do not wait for the IRMAA letter.
The MAGI definition trap
The MAGI used for IRMAA is not the MAGI used for Roth contribution limits or any other tax purpose. It is a specific calculation:
IRMAA MAGI = AGI + tax-exempt interest (municipal bond interest)
Most retirees miss two items:
- Muni bond interest counts. If you own muni bonds for the federal tax exemption, the interest is still added back for IRMAA purposes. Many retirees own munis specifically thinking they avoid IRMAA — they don't.
- Roth distributions don't count. Qualified Roth IRA withdrawals are not in AGI. This is why pre-retirement Roth conversions are so valuable: every dollar in your Roth is a dollar of income in retirement that doesn't show up on the IRMAA MAGI calculation.
Related reading
- QCD rules and limits for 2026
- Roth conversion vs MYGA bucket strategy
- Social Security survivor benefit explained
- Inherited IRA 10-year rule
- Best MYGA rates — 2026
Want my independent take on whether this fits your situation?
I'm Hans Goldstein — independent licensed insurance producer (NPN 20602398), appointed with multiple A-rated carriers. I run side-by-side comparisons against CDs, MYGAs, Treasuries, and MMFs every week for retirees and pre-retirees. Tell me what you're considering and I'll send back a written comparison.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This article is general educational information, not personalized financial, tax, or legal advice. All rates, IRS limits, Social Security PIA factors, IRMAA brackets, FDIC/NCUA coverage, and state guaranty fund coverage figures are current as of the publication date and subject to change. IRMAA brackets and Roth/Traditional IRA limits cited reflect IRS guidance for 2026 and may be updated by the IRS or SSA; confirm current figures at irs.gov and ssa.gov before acting. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he does not sell bank CDs, money market funds, or Treasury securities and is not affiliated with any bank, brokerage, or government agency discussed. No compensation has been received from any third party in connection with this article. Bank CDs are FDIC-insured deposit products; credit union share certificates are NCUA-insured; money market funds are SEC-regulated investment products with no FDIC coverage; Treasuries are direct obligations of the U.S. government; MYGAs are insurance contracts backed by carrier balance sheets and state guaranty associations. These are different product categories with different protections, tax treatments, and trade-offs. Always confirm current rates and tax law with the issuer or a CPA before acting.