5. What is the Medicare Income-Related Monthly Adjustment Amount (IRMAA)?
IRMAA stands for “Income-Related Monthly Adjustment Amount.” IRMAA is a premium for Medicare B and Medicare D that is paid over and above the standard Medicare premium. The requirement to pay the IRMAA is income-based, and it applies only to higher-income retirees. To determine if you are subject to IRMAA in any given year, the Social Security Administration (SSA) uses the Adjusted Gross Income (AGI) from your tax returns for the two preceding years. SSA will send you a letter you if you are subject to IRMMA. Further information is available on the Medicare website: https://www.medicare.gov/basics/costs/medicare-costs