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Medicare IRMAA & Penalties 2026 —
What They Are and How to Avoid Them.

IRMAA surcharges and late enrollment penalties can add hundreds — or even thousands — to your Medicare costs. Here's everything you need to know, including how to appeal IRMAA if your income has dropped.

What is IRMAA?

IRMAA stands for Income-Related Monthly Adjustment Amount. It's a surcharge added to your Part B and Part D premiums if your income exceeds certain thresholds. Social Security uses your tax return from 2 years prior — so your 2026 IRMAA is based on your 2024 income.

Just retired? You may be paying IRMAA based on old income.

If you retired in 2024 or 2025, Social Security is using your higher pre-retirement income to calculate your 2026 IRMAA. You have the right to appeal and use your current lower income instead. Call us for help →

2026 IRMAA brackets — Part B

These are the 2026 thresholds based on your 2024 tax return. The standard Part B premium is $185/month — IRMAA adds to this amount.

Tier 1 — Standard
Individual: ≤$106,000
Joint: ≤$212,000
$185.00/mo
No surcharge
Tier 2
Individual: $106,001–$133,000
Joint: $212,001–$266,000
$259.00/mo
+$74.00/mo surcharge
Tier 3
Individual: $133,001–$167,000
Joint: $266,001–$334,000
$370.00/mo
+$185.00/mo surcharge
Tier 4
Individual: $167,001–$200,000
Joint: $334,001–$400,000
$481.00/mo
+$296.00/mo surcharge
Tier 5
Individual: $200,001–$500,000
Joint: $400,001–$750,000
$592.00/mo
+$407.00/mo surcharge
Tier 6 — Highest
Individual: above $500,000
Joint: above $750,000
$628.90/mo
+$443.90/mo surcharge
Part D IRMAA — same brackets, different amounts

Part D also carries IRMAA surcharges using the same income tiers. In 2026, Part D IRMAA ranges from $13.70/month at Tier 2 up to $85.80/month at Tier 6 — added on top of your plan's regular premium.

2026 IRMAA brackets — Part D

Income (Individual / Joint)Part D IRMAA surchargeAdded to your plan premium
≤$106,000 / ≤$212,000$0No surcharge
$106,001–$133,000 / $212,001–$266,000$13.70/moAdded to your Part D premium
$133,001–$167,000 / $266,001–$334,000$35.30/moAdded to your Part D premium
$167,001–$200,000 / $334,001–$400,000$57.00/moAdded to your Part D premium
$200,001–$500,000 / $400,001–$750,000$78.60/moAdded to your Part D premium
Above $500,000 / Above $750,000$85.80/moAdded to your Part D premium

How to appeal your IRMAA

If your income has dropped since the tax year Social Security used, you can appeal using a Life-Changing Event (LCE) appeal — Form SSA-44. Here's how:

1
Confirm you have a qualifying life event
Your income must have dropped due to one of the qualifying events listed below — not just because of investment losses or general market changes.
2
Download Form SSA-44
Available at ssa.gov or at your local Social Security office. This is the Life-Changing Event form used to request a new IRMAA determination using your current income.
3
Gather your documentation
You'll need proof of the life event (retirement letter, death certificate, divorce decree, etc.) and documentation of your current reduced income (benefit statements, recent tax info, etc.).
4
Submit to Social Security
Submit Form SSA-44 with your documentation in person at your local Social Security office or by mail. In-person submission typically results in faster processing.
5
Wait for your new determination
Social Security will review your appeal and issue a new IRMAA determination. If approved, your lower premium takes effect the following month. You may also receive a refund of excess IRMAA paid.

Qualifying life events for IRMAA appeal

👔
Retirement or reduced work hours
You or your spouse stopped working or significantly reduced work
💔
Death of a spouse
Filing status changed from married filing jointly to single
📋
Divorce or annulment
Marital status changed, affecting your tax filing and income
💍
Marriage
Combined income situation changed significantly
🏦
Loss of pension income
Pension reduced or stopped due to plan termination or employer bankruptcy
🏠
Loss of income-producing property
Disaster, fraud, or other event destroyed income-generating property
⚖️
Employer settlement payment
A one-time settlement or payment inflated your prior year's return

Medicare late enrollment penalties

Separate from IRMAA, late enrollment penalties are added if you miss your enrollment window without a qualifying exception. These penalties are permanent.

Part B Late Enrollment Penalty
+10% per year delayed

For each 12-month period you were eligible for Part B but didn't enroll (without qualifying coverage), your Part B premium increases by 10% — permanently. Example: 2 years late = +20% on top of $185 = $222/month for life. See enrollment windows →

Part D Late Enrollment Penalty
+1% per month delayed

For each month without creditable drug coverage, you pay 1% of the national base beneficiary premium ($34.70 in 2026) — permanently added to your Part D plan premium. Example: 24 months late = +24% = ~$8.33/month added forever. Enroll in Part D as soon as you're eligible.

Exception: employer coverage delays are OK — if done right

If you or your spouse are actively working and covered by an employer health plan, you can delay Part B and Part D without penalty — as long as you enroll within 8 months of losing that coverage. COBRA and retiree coverage do not count. If you're unsure, call us before making any decision about delaying enrollment.

Facing IRMAA or a penalty question?

Our licensed bilingual Medicare brokers can help you understand your surcharges, guide you through an IRMAA appeal, or make sure you enroll on time. Free.