Calculator Author: Hans Goldstein, NPN 20602398 Updated: 2026-06-27

IRMAA Bracket Calculator (2026) — Avoid the Medicare Surcharge Cliff

TL;DR: IRMAA (Income-Related Monthly Adjustment Amount) is a Medicare surcharge that kicks in when your MAGI crosses specific brackets. Even $1 over a bracket triggers the full surcharge for the year — a brutal cliff. A MYGA can defer taxable interest out of MAGI and drop you back under the bracket, often saving $1,000-$5,000 per enrollee per year.

IRMAA Bracket Calculator (2026 Part B + D)

Project your MAGI vs the 2026 IRMAA brackets. See how much MYGA/NQ deferral keeps you under the next surcharge tier.

Filing status

Projected MAGI ($)

Taxable interest you're currently realizing ($)

Number of Medicare enrollees

Annual IRMAA surcharge (Part B + D)

Per enrollee · per year. Applies for the full calendar year based on MAGI from two years prior.

Current bracket

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$ to next-lower bracket

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Plan my IRMAA-aware deferral strategy

Brackets shown are 2026 thresholds. Defer taxable interest into a MYGA (non-qualified) or reposition CDs into deferred wrappers and that taxable income falls out of MAGI — potentially dropping you a bracket and saving $800-$5,000/yr. Each bracket boundary is a "cliff" — even $1 over costs the full surcharge.

How this calculator works

IRMAA brackets are reviewed each year by CMS. For 2026, the single-filer Medicare Part B + D surcharge brackets are approximately:

MAGI ≤ $103,000: no surcharge
$103,001 - $129,000: ~$83/mo extra ($996/yr)
$129,001 - $161,000: ~$208/mo extra ($2,496/yr)
$161,001 - $193,000: ~$333/mo extra ($3,996/yr)
$193,001 - $500,000: ~$459/mo extra ($5,508/yr)
$500,001+: ~$500/mo extra ($6,000/yr)

Joint-filer brackets are double the single thresholds. Surcharges apply to BOTH Part B and Part D, and to BOTH spouses if both are enrolled.

IRMAA looks at MAGI from two years prior — so 2026 surcharges are based on your 2024 tax return.

The calculator's "deferral" view shows what happens if you move taxable interest into a non-qualified MYGA (deferred and excluded from MAGI). Often a small move ($10K-$50K of taxable interest deferred) can drop you a full bracket.

What the result means

Annual surcharge is the dollars you're paying ON TOP of standard Medicare premiums, per enrollee per year. For couples both enrolled, double this number.

Current bracket is the tier you fall into based on the MAGI you entered.

$ to next-lower bracket is how much MAGI reduction would get you under the next cliff. If this number is small ($1K-$10K), even a modest MYGA deferral can save the surcharge.

Cliff effect: brackets are not "phase-in." Crossing by $1 = full surcharge. Crossing by $40K = same surcharge. This makes IRMAA one of the highest marginal tax rates in the code at the cliff edge.

When MYGA wins / when the alternative wins

MYGA defers taxable interest out of MAGI when: you currently have CDs, T-bill ladders, or interest-bearing accounts generating 1099-INT or taxable yields. Move into a non-qualified MYGA and that interest disappears from MAGI for the deferral period.

Roth conversions help when: done in years you're already over IRMAA — you don't pay surcharge twice. But avoid conversions in tight-to-bracket years.

Charitable Qualified Distributions (QCDs) help when: age 70½+ and giving to charity anyway. QCDs satisfy RMD without counting in MAGI — direct IRMAA relief.

Capital loss harvesting helps when: you have unrealized losses; $3,000/yr offset reduces MAGI.

Worked example

Scenario: 70-year-old single retiree in NY with $135,000 projected 2026 MAGI, holding $300,000 in CDs paying $15,000/yr taxable interest.

Current MAGI: $135,000 = Tier 2 ($129K-$161K)
Current surcharge: ~$208/mo × 12 = $2,496/yr
Move $300K CDs into a 5-yr MYGA — that $15K of taxable interest disappears from MAGI
New MAGI: $120,000 = Tier 1 ($103K-$129K)
New surcharge: ~$83/mo × 12 = $996/yr
Annual IRMAA savings: $1,500/yr × 5 yrs = $7,500 — on top of the higher MYGA rate vs CD

Common mistakes

Forgetting the 2-year lookback. 2026 IRMAA = 2024 tax return MAGI. Plan deferral 2+ years before it bites.
Ignoring the cliff. Being $500 over a bracket costs the same as being $30,000 over. Always check distance to nearest bracket.
Counting tax-exempt muni interest. MAGI for IRMAA ADDS BACK tax-exempt interest. Munis don't help with IRMAA.
Doubling-up Roth conversions in IRMAA-borderline years. Convert in years already over IRMAA (no marginal IRMAA cost) or in low-income years before Medicare.
Forgetting that IRMAA hits BOTH Part B and Part D. Many calculators only show Part B. Real surcharge is the sum.

Related calculators & reviews

FAQ

Q: What is MAGI for IRMAA purposes?
A: AGI + tax-exempt interest. NOT the same as MAGI for IRA contributions or for ACA subsidies — each has its own definition. IRMAA uses the simplest: AGI + muni interest.

Q: How often does IRMAA recalculate?
A: Annually. Each fall, SSA sends a letter saying what your next-year surcharge will be based on 2 years prior tax return.

Q: Can I appeal an IRMAA determination?
A: Yes, via Form SSA-44, for one of seven specific life-changing events: marriage, divorce, death of spouse, work stoppage, work reduction, loss of income-producing property, loss of pension. Cannot appeal for general income drop.

Q: Does selling my house count as income for IRMAA?
A: Capital gain above the $250K/$500K Section 121 exclusion counts as MAGI — can trigger a one-year IRMAA spike. Roth conversions, RMDs, and large IRA withdrawals do too.

Q: Are HSA contributions deducted from MAGI?
A: Yes for traditional HSA — reduces AGI which reduces MAGI. But you can't contribute to an HSA after enrolling in Medicare.

Q: Does life insurance death benefit count?
A: No — received income-tax-free, not in MAGI. Roth IRA distributions also don't count.

Q: What if both spouses are on Medicare?
A: Both pay the surcharge based on joint MAGI. So joint-tier surcharge × 2 enrollees = total household cost.

Run the numbers? Get my second-opinion review.

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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers

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Disclosure

This calculator is for educational and illustrative purposes only and is not a personalized recommendation, solicitation, or offer of any specific product. Outputs are approximations using publicly available rates, IRS tables, and standard payout factors as of 2026; actual carrier illustrations may differ. Annuity rates, caps, payout factors, surrender schedules, and tax brackets change frequently. Always confirm current values against the most recent carrier disclosure document, IRS Publication 590-B, and the actual contract before purchasing. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers. Tax discussion reflects federal law as of 2026 and is subject to change. Consult a CPA and licensed advisor before acting on any output shown.