2025 IRMAA Brackets: Discover New Medicare Premium Thresholds
Introduction
Have you noticed how healthcare expenses seem to keep creeping up just when you’re planning to step away from the workforce? If you’re a federal or military employee approaching retirement, or already retired, understanding how your Medicare costs can increase is vitally important. One of the most commonly overlooked factors affecting Medicare premiums is IRMAA (Income-Related Monthly Adjustment Amount). In 2025, IRMAA will enter a new set of brackets that could significantly raise your Medicare bill if your income crosses certain thresholds.
Picture this scenario: you’ve diligently saved in your Thrift Savings Plan (TSP), you’ve got a FERS (Federal Employees Retirement System) pension lined up, and maybe you’re eyeing Social Security benefits. These income sources add up to a degree of financial comfort, but they can also push you into higher IRMAA brackets, meaning costly surcharges on top of standard Medicare premiums. In this article, we’ll walk through the new 2025 IRMAA brackets, show how they work with Medicare Part B and Part D, and explore the strategies that may help you manage—or possibly avoid—those extra surcharges.
A Quick Refresher on IRMAA
IRMAA is designed to shift more of Medicare’s overall costs onto those with higher incomes. Essentially, if your annual income exceeds certain thresholds, your Medicare premiums for Part B (which covers physician and outpatient services) and Part D (prescription drug coverage) will go up. The Social Security Administration (SSA) determines whether or not you owe IRMAA by reviewing your Modified Adjusted Gross Income (MAGI) from the tax return you filed two years ago.
If your MAGI for 2023 is higher than the thresholds set for 2025, you’ll see an IRMAA surcharge added to your Medicare bill. It’s not a one-size-fits-all approach. The higher your income, the higher the surcharge climbs. The key to controlling these costs is knowing where the cutoff points lie—and doing some careful planning around your retirement income sources.
People often have questions about whether it’s possible to appeal IRMAA if their income drops. The short answer is yes: the government includes an appeals process if you’ve experienced a “life-changing event” like retirement, divorce, or a significant drop in your pension or work income that would bring your MAGI below the IRMAA thresholds.
2025 IRMAA Brackets Explained
For 2025, Medicare sets different income thresholds for individuals and married couples filing jointly. If you’re a federal employee who’s used to a mix of pension funds and TSP withdrawals, pay special attention here, because total household income (after factoring certain deductions) can quickly add up.
Below is a breakdown of the 2025 IRMAA income thresholds. Your IRMAA is determined by your 2023 tax return, because there’s typically a two-year gap between the most recent complete tax filing and the year IRMAA is applied.
|
Income Filing Status |
2025 IRMAA Income Thresholds (MAGI, 2023 Tax Returns) |
|---|---|
|
Individual |
• $106,000 or less: No IRMAA• >$106,000 – $133,000• >$133,000 – $167,000• >$167,000 – $200,000• >$200,000 – $500,000• >$500,000 |
|
Joint |
• $212,000 or less: No IRMAA• >$212,000 – $266,000• >$266,000 – $334,000• >$334,000 – $400,000• >$400,000 – $750,000• >$750,000 |
These thresholds are slightly higher than in 2024, giving some retirees a bit more breathing room. However, it’s crucial to remember that crossing even a small bracket boundary—by as little as a few hundred dollars—can trigger higher premiums.
Updated Medicare Part B Premiums & Surcharges
Medicare Part B covers doctor visits, outpatient care, laboratory services, and more. The standard Part B premium in 2025 is $185.00, which marks an increase of $10.30 from 2024. If you find yourself subjected to IRMAA, you’ll pay this standard premium plus a surcharge that corresponds to your income bracket.
Below is a table outlining how the IRMAA surcharges for Part B add up to your total premium:
|
IRMAA Surcharge Added to Part B |
Total Monthly Part B Premium |
|---|---|
|
$74.00 |
$259.00 |
|
$185.00 |
$370.00 |
|
$295.90 |
$480.90 |
|
$406.90 |
$591.90 |
|
$443.90 |
$628.90 |
The Part B deductible also rises in 2025, to $257. While this amount may seem modest compared to your overall healthcare spending, every increment counts, especially if you’re living on a fixed budget in retirement.
Part D IRMAA Surcharges for 2025
Part D IRMAA affects your prescription drug coverage. Even if you’re covered under the Federal Employees Health Benefits (FEHB) Program, you may still have a Medicare Part D component or a plan that coordinates with Medicare. The surcharges below are added on top of your Part D plan’s base premium.
|
IRMAA Surcharge for Part D (Monthly) |
Range of Additional Costs |
|---|---|
|
$13.70 |
Minimal surcharge |
|
$35.30 |
Moderate surcharge |
|
$57.00 |
Significant surcharge |
|
$78.60 |
High surcharge |
|
$85.80 |
Highest surcharge |
For federal retirees who rely on prescriptions, these surcharges can add up quickly. If you’re taking multiple maintenance medications, it’s a good idea to factor in rising Part D costs when mapping out your healthcare expenses in retirement.
Changes from 2024 & Future Considerations
If you had Medicare in 2024, the jump in 2025 might feel noticeable: the standard Part B premium is up by $10.30, and the Part B deductible has climbed by $17. Part D surcharges also inched upward, and the income thresholds for IRMAA are marginally higher across the board.
What about 2026? While exact figures aren’t available yet, the consistent trend is upward movement in premiums, deductibles, and IRMAA thresholds—often tied to inflation and rising healthcare costs. Keeping an eye on “irmaa brackets 2026” is something to put on your financial to-do list, especially if your income hovers near threshold boundaries. Early awareness can help you decide whether to implement strategies—like timing large withdrawals or capital gains—so you don’t unintentionally find yourself in a high bracket.
Impact on Retirement & Tax Strategies
For federal and military retirees, IRMAA can be a key financial planning concern. Between TSP withdrawals, pensions, and Social Security, your monthly income might well surpass the IRMAA bracket cutoffs. Even a modest pension increase or a slightly bigger Required Minimum Distribution (RMD) can push you into a higher bracket.
Naturally, you’ll want to see how your Modified Adjusted Gross Income is calculated. Roth conversions, for example, might reduce your future taxable income but increase your current MAGI if you do a large conversion all at once. Likewise, selling investments for a big capital gain or taking a large distribution for a big purchase could nudge you into an IRMAA bracket. By being mindful of these triggers, you can consider structuring your withdrawals more strategically to manage your overall tax and premium impact.
Some retirees also explore life-changing events that might allow them to appeal IRMAA. Common qualifying events include marriage, divorce, death of a spouse, or a permanent reduction in work hours or wages. If you genuinely experienced a lower income than what your tax return from two years ago indicates, you can request a reconsideration from Social Security.
Expert Tips for Federal Employees
Federal employees often have multiple streams of income intertwined: FERS pension, TSP distributions, Social Security, and sometimes even a second career or drill paycheck if you’re in the Reserves. Coordinating these carefully can help prevent you from unwittingly crossing an IRMAA threshold. For instance, timing your TSP withdrawals to “fill up” your current tax bracket but not exceed it can help. You might also consider partial Roth conversions in lower-income years to spread out the tax burden.
At PlanWell, our Fed-Expert Financial Blueprint is designed precisely around these complexities. By taking a holistic view, we can assist you in anticipating future IRMAA brackets and planning accordingly.
PlanWell is a financial advisor for federal employees with a 30-year track record. Our planners hold the Chartered Federal Employee Benefits Consultant (ChFEBC), Certified Financial Planner (CFP), and Accredited Investment Fiduciary (AIF) designations, ensuring you receive specialized guidance tailored for your unique retirement needs.
Conclusion & Key Takeaways
Retirement healthcare costs aren’t always top-of-mind when envisioning life after your federal or military career. Yet, IRMAA can be a significant piece of the puzzle, especially if your income places you in a higher bracket. The good news is that with a little foresight and planning, you can navigate these IRMAA brackets 2025 changes. Whether it’s through timing your withdrawals, spreading out Roth conversions, or taking advantage of appeals processes, your best defense is a proactive strategy.
Remember that even small variances in your MAGI can cause noticeable bumps in your monthly Medicare premiums. That’s why it’s so essential to integrate IRMAA awareness into your broader retirement planning.
CTA: Join Our Free Federal Retirement Planning Workshop
Ready to delve deeper into how these regulations affect your personal retirement strategy? Sign up for one of our free Federal Retirement Planning Workshops and learn how the Fed-Expert Financial Blueprint can help you retire confidently while keeping a close eye on IRMAA brackets.
