IRMAA 2026: What Higher-Income Retirees Need to Know
The Income-Related Monthly Adjustment Amount (IRMAA) is a crucial aspect of Medicare funding that significantly impacts millions of higher-income retirees. Understanding IRMAA is vital for effective retirement and healthcare planning. It was introduced in 2003 as part of the Medicare Modernization Act.
IRMAA affects retirees with incomes above a certain threshold. For 2026, based on 2024 income, the tax brackets are projected to start at about $109,000 for individuals and around $218,000 for couples filing jointly. As income increases, so do the surcharges, with the highest tax brackets set at $500,000 for individuals and $750,000 for joint filers. The exact tax brackets and surcharge amounts will be announced in fall 2025 and are adjusted annually for inflation.
Retirees should be aware of the projected tax brackets for 2026 to plan their Medicare costs effectively. The surcharges can significantly impact monthly Medicare premiums, making it essential for higher-income retirees to understand and factor IRMAA into their financial planning.
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