Earn $206,001 in 2024? Your 2026 Medicare Will Cost $7,056 More

IRMAA surcharges create massive income cliffs that compound across Medicare Parts B and D

The Details

THE PART MOST PEOPLE MISS: IRMAA isn't marginal—it's a cliff. Unlike tax brackets where only dollars above the threshold get taxed higher, crossing an IRMAA line by $1 retroactively increases premiums on your entire Medicare coverage. A married couple at $412,001 pays $14,112 more annually than at $411,999.

What this means for you

Retirement decisions compound — getting one of these details wrong can cost tens of thousands of dollars over a retirement. The good news: most of these mistakes are completely avoidable if you understand how the rule actually works.

Next step

If you want to see how this applies to your specific situation, take the free Retire Ready Score — a 2-minute assessment that scores your current plan across income, taxes, healthcare, and protection.