IRMAA 2024: What Retirees Need to Know About Medicare Costs
The Income-Related Monthly Adjustment Amount (IRMAA), a component of Medicare funding, affects millions of higher-income retirees. Understanding IRMAA is crucial for effective retirement and healthcare planning. IRMAA was introduced in 2003 as part of the Medicare Modernization Act and can significantly impact monthly Medicare costs.
IRMAA brackets are generally based on the income from two years prior. For 2024, the brackets will be based on 2022 income, although specific figures were not detailed. Looking ahead to 2026, projected IRMAA brackets are estimated to be based on 2024 income. For instance, Single filers may see brackets starting at $134,000, while Married Filing Jointly could start at $268,000.
IRMAA's impact on Medicare costs underscores the importance of understanding and planning for this component in retirement. Staying informed about projected IRMAA brackets based on future incomes can help retirees anticipate and manage their healthcare expenses.
