You open a letter from the Social Security Administration and learn you'll be paying more than the standard premium for Medicare Part B and Part D. That extra charge is called IRMAA — the Income-Related Monthly Adjustment Amount — and for many new retirees it comes as an unwelcome surprise. The good news: in many situations, you can get it reduced or removed.
How IRMAA Works
IRMAA is a surcharge added to your Part B and Part D premiums if your income is above a threshold set each year. Two things catch people off guard:
- It's based on old income. Social Security uses your modified adjusted gross income (MAGI) from your tax return two years ago. Your 2026 premiums are based on your 2024 return.
- It's a cliff, not a slope. Going even one dollar over a bracket puts you in the next tier for the entire year.
Why this hits new retirees hardest: the tax return being used is often from your final, highest-earning working years — even though your income today is much lower. You may be charged as a "high earner" precisely when your paycheck has stopped.
You Can Appeal — Here's When
Social Security lets you request a reduction if your income has dropped because of a life-changing event, including:
- Retirement or reduced work hours (the most common reason)
- Marriage, divorce, or the death of a spouse
- Loss of income-producing property beyond your control
- Loss or reduction of a pension
- An employer settlement payment from a bankruptcy or reorganization
The appeal is filed on form SSA-44 ("Medicare Income-Related Monthly Adjustment Amount — Life-Changing Event"), along with evidence of the event and your more recent, lower income. If Social Security agrees, they recalculate using the newer figure — and the savings apply to both spouses' premiums if you each pay IRMAA.
If There Was No Life-Changing Event
You can still ask for a correction if the tax information Social Security used was wrong or amended. And even when this year's IRMAA stands, smart income planning — how you time withdrawals, Roth conversions, and capital gains — can help you avoid crossing a bracket in future years. That's a conversation worth having before December, not after.
What To Do When the Letter Arrives
- Don't ignore it — the surcharge starts whether or not you respond.
- Check which tax year Social Security used.
- If your income has dropped since then, gather proof and file form SSA-44.
- Reassess each year — IRMAA is recalculated annually, so a one-time spike in income only affects one year.
This article is for general education only and is not tax or legal advice. Income thresholds and premium amounts are set annually by CMS and the Social Security Administration. For official information visit ssa.gov or Medicare.gov.