IRMAA Bracket Calculator

Medicare’s Income-Related Monthly Adjustment Amount (IRMAA) is a surcharge added to your Part B and Part D premiums when your Modified Adjusted Gross Income (MAGI) crosses one of six income tiers set by CMS each year. Because IRMAA uses the tax return you filed two years ago, a Roth conversion or an in-kind gold IRA distribution taken in 2026 can raise your 2028 Medicare premiums. The calculator below shows your current tier under the 2026 brackets, runs a what-if with a planned conversion, and tells you how much headroom you have before the next cliff.

Why does Medicare peek at a two-year-old tax return?

The IRMAA formula runs on the most recent federal tax return the Social Security Administration has on file when it sets your premium for the coming calendar year. That return is almost always the one you filed two years earlier. Your 2026 Part B premium is set from the return you filed in 2025, which covered tax year 2024. Your 2028 premium is set from the return you file in 2027 for tax year 2026.

This lookback is written into 42 U.S.C. section 1395r(i), the statute that authorizes income-based Medicare premiums. SSA implements it in operating manual HI 01101.031, which specifies that IRMAA is set from the tax year that is two calendar years prior to the premium year. The lookback is not a mistake or an administrative shortcut. It exists because SSA needs a final, filed, IRS-processed return to make a defensible determination, and returns are not finalized until the calendar year after the tax year closes.

The practical consequence: every conversion, in-kind gold IRA distribution, capital gain or lump-sum retirement withdrawal you take in the current year does not affect your Medicare premiums today. It affects them the year after next. This is the single most misunderstood piece of the IRMAA rulebook, and it is why the calculator above ships with a lookback banner instead of a small footnote.

What counts as MAGI for IRMAA (and what does not)?

SSA defines MAGI for IRMAA as your Adjusted Gross Income (Form 1040 line 11) plus tax-exempt interest (Form 1040 line 2a). That is a narrower definition than the MAGI used for Roth contribution limits or premium tax credits. The full list of what does and does not enter that calculation matters, because a five-figure conversion can quietly triple your Medicare cost two years later.

Included in MAGI (raises IRMAA):

• Taxable IRA and 401(k) distributions, including required minimum distributions after age 73 under SECURE 2.0.
• Roth conversions (the entire converted amount is treated as an IRA distribution for income purposes, even though no cash left the tax-deferred wrapper).
• In-kind gold IRA distributions valued at fair market value on the distribution date, per the custodian’s FMV determination.
• Capital gains from taxable brokerage sales, including gold and silver ETFs treated as collectibles.
• Ordinary wages, self-employment income, rental income, pension income, and taxable Social Security benefits.
• Tax-exempt municipal bond interest (added back specifically for the IRMAA MAGI definition).

Not included in MAGI (does not raise IRMAA):

• Direct trustee-to-trustee transfers between IRAs of the same tax character. Money moves from one custodian to another without any 1099-R, so nothing lands on the 1040. This is the standard method for moving into a self-directed gold IRA.
• Qualified Roth distributions (account age 5 plus years and holder 59.5 plus) taken from a Roth IRA that was funded years earlier.
• Qualified Charitable Distributions (QCDs) up to $108,000 for 2026 for holders age 70.5 plus, made directly from an IRA to a qualifying charity. QCDs count toward the RMD but are excluded from AGI.
• The non-taxable portion of Social Security benefits.
• Return of principal on a taxable bond or bond fund.

The line between a rollover and a distribution matters. A direct rollover (custodian sends the money directly to the receiving IRA custodian) leaves no trace on line 4b of your 1040 and does not affect MAGI. A 60-day rollover where you took possession of the check for less than 60 days is reported on line 4a but should show $0 on line 4b if you completed the deposit; only if you missed the 60-day window does it hit MAGI. A Roth conversion, by contrast, is always taxable in the year of conversion and always shows up in MAGI, even when done by direct custodian-to-custodian transfer.

The IRMAA cliff explained with worked examples

IRMAA is a cliff, not a phase-in. Every other federal tax mechanism you know (income brackets, capital gains rates, Social Security taxation) applies a rate to income above a threshold. IRMAA does not. Once your MAGI crosses a threshold by a single dollar, the entire next-tier surcharge applies to every month of the affected premium year. The math gets ugly fast.

Worked example one: MFJ with $273,500 MAGI, $20,000 Roth conversion under consideration

A married couple filing jointly reports 2024 MAGI of $273,500. In 2026, they consider converting $20,000 of the husband’s Traditional IRA to Roth. Under the 2026 brackets, MFJ Tier 2 covers $218,001 to $274,000. Adding the $20,000 conversion pushes 2026 MAGI to $293,500, into Tier 3 ($274,001 to $342,000). The two-year lookback means this hits their 2028 premiums.

Tier 2 IRMAA (per person, per month): Part B surcharge $81.20 plus Part D surcharge $14.50 equals $95.70. Both spouses on Medicare: $95.70 x 2 x 12 equals $2,296.80 in annual IRMAA at Tier 2.

Tier 3 IRMAA (per person, per month): Part B surcharge $202.90 plus Part D surcharge $37.50 equals $240.40. Both spouses on Medicare: $240.40 x 2 x 12 equals $5,769.60 in annual IRMAA at Tier 3.

Cost of the tier jump: $5,769.60 minus $2,296.80 equals $3,472.80 in additional Medicare premiums for the 2028 premium year, triggered by a $20,000 Roth conversion. That is an effective marginal rate of 17.4 percent on the last $20,000 (on top of the regular 24 percent federal ordinary-income tax on the same conversion).

The workaround: convert $500 in 2026 (staying at $274,000 MAGI, the top of Tier 2) and $19,500 in 2027. The 2028 IRMAA hit is zero from the 2026 slice, and the 2029 IRMAA hit is measured against 2027 MAGI in isolation. If 2027 MAGI stays under $274,000, no cliff. If it crosses into Tier 3, the cost is spread across two premium years instead of one, and by then Medicare thresholds may have moved.

Worked example two: Single filer at $170,000 MAGI, $12,000 gold IRA distribution

A single retiree at 68 reports 2024 MAGI of $170,000. She is holding physical gold in a self-directed IRA and takes a $12,000 in-kind distribution in 2026 (one bar out of the depository into her personal possession) to help fund a home repair. The custodian reports the distribution on Form 1099-R at the fair market value of the bar on the distribution date, adding $12,000 to her 2026 AGI. Her 2026 MAGI becomes $182,000.

Single Tier 3 covers $137,001 to $171,000. Her 2024 MAGI of $170,000 sits just under the cliff. She was already at Tier 3, paying Part B $405.80 per month plus Part D $37.50 per month, or $5,319.60 in annual IRMAA for 2026.

Single Tier 4 covers $171,001 to $205,000. Her post-distribution 2026 MAGI of $182,000 sits in Tier 4. This will set her 2028 premiums at Part B $527.50 plus Part D $60.40, or $7,054.80 in annual IRMAA. The 2028 delta above Tier 3 is $1,735.20.

The comparison the calculator makes visible: she got $12,000 in physical gold out of the account and, in exchange, will pay $1,735.20 more in Medicare surcharges in 2028. That is a 14.5 percent effective drag on the withdrawal, before regular federal and state income tax on the $12,000. A trustee-to-trustee transfer of the same bar to a different self-directed IRA custodian would not trigger this cost. Only the distribution does.

2026 IRMAA bracket reference table (CMS)

The full 2026 schedule for beneficiaries with standard Part B coverage. Source: CMS Fact Sheet, “2026 Medicare Parts A and B Premiums and Deductibles,” released November 14, 2025. The Part D surcharge is added to whatever Part D plan premium you already pay.

Married filing separately (lived with spouse at any time during the year): the schedule collapses into three tiers under 42 CFR 408.20. MAGI at or below $109,000 pays the standard Part B ($202.90) and no Part D surcharge. MAGI above $109,000 and below $391,000 pays $649.20 total Part B and $83.30 Part D surcharge. MAGI at or above $391,000 pays $689.90 total Part B and $91.00 Part D surcharge. The MFS-lived-with-spouse schedule is deliberately punishing; if you are considering filing separately after age 63 with meaningful investment income, model both filing statuses before you file.

What updates each year, and what stays stable

CMS re-issues the Part B standard premium, the Part B deductible, and the IRMAA bracket dollar boundaries every November for the following calendar year. The 2025 standard Part B premium was $185.00; the 2026 standard premium is $202.90. The bracket boundaries themselves also move: the 2025 first-tier ceiling was $106,000 (single) / $212,000 (MFJ); the 2026 first-tier ceiling is $109,000 / $218,000. Do not use last year’s numbers to plan this year’s conversion.

The mechanics that do not change: the six-tier structure, the two-year lookback, the cliff behavior (no phase-in), the per-beneficiary application to Part B and Part D, and the appeal mechanism through Form SSA-44. The dollar amounts move; the framework is stable.

How to appeal IRMAA with Form SSA-44 (life-changing events)

SSA determines your IRMAA from a two-year-old tax return. If your income has fallen since that return was filed because of a life-changing event, you can file Form SSA-44 to request that SSA use a more recent, lower income year instead. The form (OMB No. 0960-0784) lists eight qualifying events:

• Marriage.
• Divorce or annulment.
• Death of spouse.
• Work stoppage (retirement).
• Work reduction (moving from full-time to part-time).
• Loss of income-producing property due to a disaster or other event beyond your control (excluding stock market losses).
• Loss of pension income.
• Employer settlement payment as a result of the employer’s closure, bankruptcy, or reorganization.

SSA will not reconsider IRMAA for reasons outside this list. Voluntary retirement counts (work stoppage). A big one-time capital gain from selling appreciated securities does not, unless it was forced by one of the enumerated events. Download the current version of the form from ssa.gov/forms/ssa-44.pdf, complete it, and file it with your local SSA field office along with supporting documentation. SSA typically issues a corrected determination within 30 to 60 days.

Rollover and conversion timing to stay below thresholds

The rest of your gold IRA fees and tax picture is complicated enough. IRMAA adds a distinct second axis you have to manage. Three tactics reduce IRMAA drag without sacrificing the tax planning:

Split a large Roth conversion across two or three tax years. The Roth conversion tax calculator shows how the federal bracket math works. Layer that on top of the IRMAA bracket math: pick a target MAGI ceiling for the current tax year (usually the top of your current IRMAA tier, minus a $2,000 buffer for late-year distributions and dividends you did not expect), and convert only up to that ceiling. Do the remainder next year. The tax-side outcome is nearly identical over the two-year period. The IRMAA outcome is dramatically better.

Coordinate rollovers as direct transfers, never distributions. Moving an existing IRA to a self-directed gold IRA custodian should always run as a direct trustee-to-trustee transfer. A 60-day rollover forces the check through your hands, gets reported on Form 1099-R as a gross distribution, and while a completed rollover is not taxable, the reporting sometimes trips up SSA’s automated IRMAA determination and requires a phone call to correct. Direct transfer leaves no paper trail on the 1040.

Time distributions before the two-year window matters, not after. If you plan to be on Medicare in 2028, your 2026 tax return sets your 2028 premiums. The last full year to execute large discretionary distributions before Medicare begins is the year that turns 63. From age 63 forward, every dollar of MAGI is being priced into future Part B and Part D premiums. This is the reason the Roth conversion window analysis emphasizes the pre-63 years as the ideal conversion window.

Frequently asked questions

Does IRMAA apply to Medicare Advantage (Part C) plans?

Yes, through the Part B premium. Medicare Advantage enrollees still pay the Part B premium, which is subject to IRMAA, and any Part D drug coverage bundled into the MA plan is also subject to the Part D IRMAA surcharge. See medicare.gov/basics/costs/medicare-costs.

Do both spouses pay IRMAA?

Yes, if both are enrolled in Medicare Part B and Part D. IRMAA is applied per beneficiary using the household MAGI on the joint return. A couple with 2024 MFJ MAGI in Tier 3 pays two full Tier 3 surcharges once both spouses are on Medicare, doubling the annual IRMAA cost.

Is IRMAA deductible on my tax return?

Medicare Part B premiums, including any IRMAA surcharge, are treated as qualifying medical expenses under IRC section 213. That means they count toward the medical-expense itemized deduction (deductible above 7.5 percent of AGI), and self-employed individuals can deduct them above the line under the self-employed health insurance deduction. Confirm the specific mechanics with your CPA. See IRS Publication 502.

What if my MAGI dropped this year because I retired?

File Form SSA-44 and select “Work stoppage” as the life-changing event. Attach a copy of your final pay stub or a letter from your former employer stating your termination date. SSA will use your estimated current-year income instead of the two-year-old return, and issue a corrected determination that removes the surcharge for the affected months.

Does a rollover from a 401(k) to an IRA count as MAGI?

No, provided it is a direct rollover (trustee-to-trustee) or a completed 60-day rollover of a distribution back into a qualified plan within the 60-day window. The distribution shows on Form 1099-R and on line 5a of the 1040, but line 5b (the taxable amount) reads $0 when the rollover is completed correctly. Only the taxable amount enters AGI.

Can I use tax-loss harvesting to reduce IRMAA?

Yes, up to a limit. Capital losses net against capital gains without limit, and up to $3,000 in net capital losses per year can offset ordinary income (Form 1040 line 7 flows through to AGI). If a large gold ETF or brokerage sale created gains, offsetting losses harvested in the same year reduce AGI and therefore reduce MAGI for IRMAA purposes two years later.

What is the difference between the IRMAA cliff and the Social Security tax cliff?

They are separate but often triggered together. The Social Security taxation cliff (from IRC section 86) determines what percentage of your Social Security benefits are taxable (up to 85 percent when combined income exceeds $34,000 single or $44,000 MFJ). The IRMAA cliff (from 42 U.S.C. section 1395r(i)) determines your Medicare Part B and Part D surcharge. A single Roth conversion can trigger both cliffs at once: more Social Security becomes taxable, and the surcharge from the additional MAGI compounds. Coordinated planning across both cliffs matters more than optimizing either one in isolation.

Does IRMAA look at the same MAGI as the ACA subsidy phase-out?

No. The Affordable Care Act premium tax credit uses a broader MAGI definition (AGI plus tax-exempt interest plus non-taxable Social Security plus foreign earned income). IRMAA MAGI is narrower: AGI plus tax-exempt interest only. This matters primarily for retirees under 65 on ACA coverage who transition to Medicare, because the same conversion can look tolerable under ACA and painful under IRMAA, or vice versa.

Related tools and reading

The rest of the Goldiew retirement-tax toolset: the Roth conversion gold IRA tax calculator layers federal and state income tax on a conversion; the gold IRA fees and taxes reference covers custodian and depository fees that do not affect IRMAA but do affect net return. The Medicare-timing angle on gold IRA distributions is worked through in more detail on the IRMAA Medicare cliff distribution timing guide. The full library of numeric tools is at Goldiew Tools.

Sources

• CMS Fact Sheet, “2026 Medicare Parts A and B Premiums and Deductibles”, released November 14, 2025: 2026 bracket dollar boundaries, standard Part B premium of $202.90, Part D IRMAA schedule.
• CMS MLN Matters MM14279, released December 5, 2025: Part B deductible of $283 for 2026, Part A hospital deductible of $1,736.
• Form SSA-44, “Medicare Income-Related Monthly Adjustment Amount, Life-Changing Event”: the eight qualifying events and the reconsideration procedure.
• 42 U.S.C. section 1395r(i): the statutory basis for income-related Part B premium adjustments and the reference to the two-year lookback.
• IRS Publication 590-B: rules for distributions from traditional and Roth IRAs, including Roth conversion treatment and required minimum distribution mechanics.
• IRS Publication 502: medical expense deduction treatment of Medicare Part B premiums, including IRMAA surcharges.
• Medicare.gov, “Medicare costs at a glance”: consumer-facing summary of the 2026 premiums and deductibles.

The calculator inputs and outputs are illustrative for educational purposes only. They are not tax, legal, or investment advice. The IRMAA determination that governs your actual Medicare premium is the one on your SSA initial determination notice. Consult your CPA and, for any conversion, transfer, or distribution decision, a qualified retirement planner familiar with your full income picture.