Medicare doesn't ask what you earn today. It asks what you earned two years ago.
That rule is called IRMAA. It's a surcharge added to your Part B and Part D premiums when the income on your return from two years back was above a certain line. Per person.
For 2026: the standard Part B premium is $202.90 a month. Report more than $109,000 single or $218,000 joint on your 2024 return, and it becomes $284.10. Top tier is $689.90. Full table in card four.
Two things worth knowing.
Income at 63 sets your premium at 65. A Roth conversion, a home sale, a large IRA withdrawal — it shows up two years later, in a letter.
And the lines are cliffs. $109,000 and $109,001 are two different premiums for the whole year. About $974 apart, per person.
To be fair: sometimes the surcharge is still worth it. A conversion that raises premiums for one year can still be the right move when the whole plan is laid out. The problem is finding out after the year is closed.
Every retirement decision touches at least three others, and the order changes the outcome. Nobody sees that from inside their own plan.
If you'd like yours laid out in the order they have to happen, that's the Income Order Review. Thirty minutes on Zoom. Sometimes the answer is you're in good shape.
Educational information only. Not tax, legal, or investment advice. Confirm your figures with a qualified tax professional.
https://dwfinancialgroup.com
