www.irmaa-help.com | 866.907.4275
Learn How IRMAA Impacts Your Medicare Costs and Discover Strategies to Manage It.
Your Guide to Managing IRMAA
and Reducing Medicare Costs
Get the Facts About Medicare’s Income-Related Monthly Adjustment Amount (IRMAA)
VIRTUE FINANCIAL ADVISORS | 6 CADILLAC DRIVE, SUITE 310 | BRENTWOOD, TN, 37027 | 866.907.4275
VIRTUE FINANCIAL ADVISORS
6 CADILLAC DRIVE, SUITE 310
BRENTWOOD, TN, 37027
866.907.4275
© Copyright 2017-24, Virtue Financial, Inc. Virtue Advisors is an insurance marketing organization based out of Nashville, Tennessee, USA and is the IMO/FMO and sister company of Virtue Capital Management, LLC , both entities form the parent company Virtue Financial. All photos, content and information on this site is protected by copyright and any duplication or use without consent is strictly prohibited.
© Copyright 2017-24, Virtue Financial, Inc. Virtue Advisors is an insurance marketing organization based out of Nashville, Tennessee, USA and is the IMO/FMO and sister company of Virtue Capital Management, LLC ,
both entities form the parent company Virtue Financial. All photos, content and information on this site is protected by copyright and any duplication or use without consent is strictly prohibited.
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About IRMAA: Key Information You Need to Know
WHAT IS IRMAA?
The Income-Related Monthly Adjustment Amount (IRMAA) is an extra charge added to your Medicare Part B and Part D premiums if your income exceeds certain levels. These additional costs can catch retirees by surprise, especially since they are based on income reported two years prior. Our goal is to provide clear, actionable information so you can understand how IRMAA is calculated and make informed decisions about your Medicare costs.
HOW IRMAA AFFECTS YOU
Many people are surprised to find that their Medicare premiums can increase due to income reported two years prior. Understanding how IRMAA is calculated and knowing the income thresholds can help you plan ahead. Whether you’re already impacted by IRMAA or want to avoid these surcharges in the future, it’s essential to explore your options.
For higher-income individuals, IRMAA can significantly increase Medicare premiums, potentially taking a larger chunk out of your retirement income. By understanding how IRMAA works, you can take steps to manage or reduce your exposure to these surcharges. Whether you’re just starting Medicare or already affected by IRMAA, our resources are here to help you navigate this important aspect of retirement planning.
HOW WE CAN HELP
Our mission is to empower you with knowledge and tools to effectively manage your Medicare costs. We provide easy-to-understand information and practical strategies to help you avoid unnecessary surprises and maintain control over your financial future.
Download our free guide to learn more about IRMAA and discover proactive strategies to help you save money.
Key Info: How IRMAA Is Calculated
And What It Can Mean to You.
UNDERSTANDING INCOME THRESHOLDS AND HOW IRMAA IS APPLIED
IRMAA is based on your modified adjusted gross income (MAGI) from two years prior. For example, your 2024 Medicare premiums are based on your income from 2022. The more you earn, the higher your premiums may be. Here’s an overview of how the tiers work and what you might expect to pay.
IRMAA INCOME THRESHOLDS
• Income up to $103,000 (individuals) or $206,000 (couples): No IRMAA surcharge
• Income between $103,001 and $206,001: Higher premiums apply
• (Additional tiers continue with increasing income levels.)
STRATEGIES TO REDUCE IRMAA
If you’re near a threshold, there are steps you can take to lower your taxable income, such as managing retirement withdrawals, Roth conversions, and more. Our tips and strategies can help you plan ahead and reduce your Medicare costs. Download our free guide to learn more about IRMAA and contact us to get started on saving more money for your retirment.
Resources: Tools & Learning Hub for
IRMAA Planning & Medicare Expertise
IRMAA CALCULATOR
An interactive tool to estimate IRMAA charges based on client income.
EDUCATIONAL WEBINARS
On-demand webinars on Medicare planning and tax-efficient strategies.
DOWNLOAD OUR FREE GUIDE
Download our comprehensive guide on IRMAA strategies, complete with examples and tips on managing income thresholds.
Case Study: Reducing IRMAA Costs
for a High-Income Retiree
CLIENT BACKGROUND
• Name: John and Mary Smith
• Ages: Both age 72
• Filing Status: Married, filing jointly
• Annual Income (2022): $240,000
• Income Sources:
Pension: $60,000
Required Minimum Distributions (RMDs): $100,000
Capital Gains from Investments: $40,000
Social Security Benefits: $40,000
PROBLEM
In 2025, John and Mary discovered that their Medicare Part B and Part D premiums had increased significantly due to IRMAA surcharges. Their income placed them in the second IRMAA bracket, resulting in surcharges totaling $6,810 for 2025 and will increase every year. They needed strategies to lower their taxable income and avoid high IRMAA surcharges in the future.
STRATEGIES IMPLEMENTED
Roth Conversions Over Multiple Years:
The Smiths’ RMDs were a major contributor to their high taxable income. They began converting a portion of their traditional IRA funds into a Roth IRA over several years, taking advantage of lower-income years before age 73. Roth conversions temporarily increase taxable income, but once in the Roth IRA, the funds grow tax-free and do not contribute to future IRMAA calculations.
Tax-Loss Harvesting:
The Smiths’ financial advisor recommended selling investments at a loss to offset gains. This strategy helped reduce their taxable income while maintaining their overall investment portfolio, keeping them below a critical IRMAA threshold.
Charitable Contributions via Qualified Charitable Distributions (QCDs):
Instead of using after-tax dollars, John and Mary began donating directly from their IRA as QCDs. This satisfied part of their RMD requirement while reducing their taxable income, excluding the QCD amount from their adjusted gross income (AGI), which directly impacts IRMAA calculations.
Strategic Withdrawal Planning
The Smiths adjusted the order of withdrawals from different accounts, balancing tax-free Roth withdrawals with taxable account distributions. This allowed them to manage their taxable income effectively while still meeting their spending needs.
Deferring Capital Gains
They strategically deferred selling appreciated investments in higher-income years. By timing capital gains realizations for lower-income years, they avoided pushing their income above critical IRMAA thresholds.
RESULTS
By implementing these strategies, John and Mary successfully reduced their taxable income below the $212,000 threshold (for married couples), resulting in lower IRMAA surcharges. Their Medicare Part B and Part D premiums dropped by approximately $2,000 in the following year. The combination of Roth conversions, QCDs, and tax-efficient withdrawal strategies positioned them to consistently stay in a lower IRMAA bracket, saving thousands.
LESSONS LEARNED
Proactive Planning is Essential
Effective IRMAA management requires advance planning, particularly regarding income sources that trigger higher premiums. By considering future IRMAA thresholds, retirees can avoid costly surprises.
Flexible Income Sources are Key
Having access to a variety of income sources—Roth IRAs, taxable accounts, tax-deferred accounts—enables retirees to manage their taxable income and minimize IRMAA surcharges.
Integrating Tax and Medicare Strategies
IRMAA management involves coordinating tax planning, charitable giving, and investment strategies. A holistic approach reduces both taxes and Medicare premiums
Meet the Team: Our Team of Professionals Are Here to Serve You.
Jeremy Rettich
Chief Executive Officer
James Webb
Chief Operating Officer
Jeremy Threlkeld
Director of Business Development
Shane Holder
VP of Advisor Development
Aaron Hall
Business Development
Consultant
Chris Rosado
Advisor Development
Team Support
Brad Bahr
Life Insurance Sales Mgr
Patty Smith
VA Contracting
Joe Stamps
Director of Life/LTC
Aristotle McDonald
Business Development
Consultant
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VIRTUE ADVISORS | 6 CADILLAC DRIVE, SUITE 310 | BRENTWOOD, TENNESSEE USA
VIRTUE ADVISORS
6 CADILLAC DRIVE, SUITE 310
BRENTWOOD, TENNESSEE USA
© Copyright 2017-24, Virtue Financial, Inc. Virtue Advisors is an insurance marketing organization based out of Nashville, Tennessee, USA and is the IMO/FMO and sister company of Virtue Capital Management, LLC ,
both entities form the parent company Virtue Financial. All photos, content and information on this site is protected by copyright and any duplication or use without consent is strictly prohibited.
